The Rule of 72 is a simple and handy formula used for estimating the number of years it will take for

an investment to double in value at a fixed annual rate of return or interest. It's a quick and rough
approximation and can be useful for making rough financial calculations in your head without the
need for a calculator or spreadsheet.

The formula for the Rule of 72 is as follows:

Number of Years to Double = 72 / Annual Rate of Return

Here's how it works:

1. Determine the annual rate of return on your investment, expressed as a percentage. For example, if
you expect an investment to grow at a rate of 6% per year, you would use 6 as the annual rate of
return in the formula.
2. Plug the annual rate of return into the formula. In this example, the calculation would be:
Number of Years to Double = 72 / 6 = 12 years

So, if you invest money at a 6% annual rate of return, it will take approximately 12 years for your
initial investment to double in value.

Keep in mind that the Rule of 72 is an approximation and assumes a constant rate of return, which is
not always the case in real-world investments. It's most accurate for interest rates between 6% and
10%. For more precise calculations, you should use financial calculators or spreadsheets, which can
account for compounding interest and varying rates over time.