How to double money : Everyone wants that their investment money should double. But this isn’t so easy. For this you will need a lot of time and patience. If you want to double your money in a safe investment option, you can invest in Kisan Vikas Patra. This scheme gives 7.5 percent compound interest annually. This scheme doubles your money in 115 months i.e. 9 years and 7 months. Talking about the share market, there are many such shares which have not only doubled the investors’ money but even 100 times. However, this is quite a risky investment option. Today we are going to tell you how to know when your money will double.
rule of 72
The rule of 72 is quite popular in financial planning. This rule tells when your money doubles in an investment option. To understand the Rule of 72, you divide the expected annual rate of return by 72. For example, you have invested Rs 1 lakh in an investment option which is giving 8 percent annual return. Now dividing 72 by 8 will result in 9. This 9 is the number of years it will take for your investment to double. That means in this investment it will take 9 years for your Rs 1 lakh to become Rs 2 lakh.
rule of 114
Similarly, the Rule of 114 tells you 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 way, it will take 11.4 years for your money to triple in this investment.
rule of 144
Similarly, using 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 instead of 72 in the formula. Like an investment is giving you 12 percent annual return. So, it will take 144/12= 12 years for your amount to quadruple in this investment. You can also use this formula in reverse to find out what percentage of annual return will be required to multiply your investment 4 times in so many years.
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