Rule of 70 Calculator is an online personal finance assessment tool in the investment category to measure the time period at which an investment gets doubled based on the Rule 70 method.
Rule 70 investment doubling time can be calculated by dividing the title 70 by the given interest rate.
How do you find the Rule of 70?
Exponential Growth and the Rule of 70. There’s an easy way to figure out how quickly something will double when it’s growing exponentially. Just divide 70 by the percent increase, and you’ve got the doubling time. It works in reverse, too: divide 70 by the doubling time to find the growth rate.
What is the rule of 70 and how does it work?
The rule of 70 states that in order to estimate the number of years for a variable to double, take the number 70 and divide it by the growth rate of the variable. This rule is commonly used with an annual compound interest rate to quickly determine how long it would take to double your money.
Why does the Rule of 70 work?
The Rule of 70 is commonly used in accounting and finance as a way of estimating the number of years (t) it will take for the principal investment (P) to double in value given a particular interest rate (r) and an annual compounding period. The Rule of 70 says that the doubling time is close to .
Is the rule of 70 accurate?
However the Rule of 70 is not always so accurate. According to the Rule of 70, the principal and interest will double the initial principle after 70/100 = 0.7 years. The actual doubling time for an investment returning 100 percent each year is one year.