Investment Tips: With the rule of 72, 114 and 144, you can find out how much time it will take for your investment in an investment option to double, triple and quadruple.
Investment Tips: According to personal finance experts, you should always invest in the investment option that you understand. If you do not have good knowledge about any investment, then avoid taking risk there. Personal finance experts have made many rules related to investment, which are very useful in the investment journey. Three such rules are 72, 114 and 144. Let us know what these rules say.
Rule of 72
This rule tells when your money doubles in an investment option. To understand the rule of 72, you have to divide the rate of potential annual return by 72. For example, you have invested Rs 1 lakh in an investment option that is giving 8 percent annual return. Now dividing 72 by 8 will give 9. This 9 is the number of years it will take for your investment to double. That is, in this investment, it will take 9 years for your Rs 1 lakh to become Rs 2 lakh.
Rule of 114
The rule of 114 tells how much time it will take for your investment to triple. In this rule, you have to use 114 instead of 72. For example, if an investment is giving you 10 percent annual return, then it will take 114/10 = 11.4 years for your money to triple in this investment. In this way, it will take 11.4 years for your money to triple in this investment.
Rule of 144
With the rule of 144, we can find out how much time it will take for our investment to quadruple. For this, you have to put 144 in place of 72 in the formula. For example, if an investment is giving you 12 percent annual return. So, in this investment, it will take 144/12 = 12 years for your money to quadruple. You can also use this formula in reverse order to find out how much annual return will be required to quadruple your investment in so many years.
