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The Rule of 72 can be a helpful guide in targeting a goal for your return and determining which investment is fitting to you.  It assists you in estimating the number of years it takes to double your investment.  

Based on the Rule of 72, a one-time contribution of $2,000 doubles six more times at 12% than at 3%.  To calculate, divide 72 by the percent of interest that your investment earns.   And consider how many doubling periods you are likely to have before you reach your goal.
The Rule of 72

72
10

=

7.2
percent rate of
return
years
to
double

Rate of Return

Age 3% 6% 12%
19 $2,000 $2,000 $2,000
25 . . $4,000
31 . $4,000 $8,000
37 . . $16,000
43 $4,000 $8,000 $32,000
49 . . $64,000
55 . $16,000 $128,000
61 . . $256,000
67 $8,000 $32,000 $512,000
Effective rate of return compounded annually, rounded to the nearest $1,000.  This table serves as a demonstration of how the Rule of 72 works and is only an approximation of accumulations.  It is for illustrative purposes only and does not take taxes or applicable fees into account and does not represent an actual investment.

The CPA.  
Never Underestimate The Value.

Before applying anything you read to your business or personal situation, you should contact us.

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