Hello friends, we are a studypad and we are here to master the financial concepts and solve life problems

of various kinds. so
let's begin!!!!
• Meet Lucky, He is a working professional at a software company. He
saves and invests his money in fixed deposits with a 6% compounded
rate of interest. And he is very curious to know how long it takes to
double his money. we all want to double our money in a night but
guys this is only possible in movies and gambling but in real life, it is
not possible. here's a simple trick to 2x money
• the rule of 72, Lucky found out a simple method to know how to calculate the
time it takes to double money from his friend tony. tony taught the lucky rule
of 72. It is a very easy method just you need to have two things in your mind
• First - interest rate and
• second - the number 72
• you just need to divide 72 by interest rate.
• let's take the example of lucky, Lucky fixed deposit give a 6% compounded
interest rate. He wants to find out the time it takes to double his money.
• he divide 72 with his rate of return and found out that it will take him 12 years
to double money
• For simplicity, the formula is 72/rate of return= Time for investment
to double. result come in years.
• Let's take another example,
• Lucky puts his money in a mutual fund which gives him a 12% rate of
return and he wants to know years to double his money. He all the
values in the formula to compare his returns with his fixed deposit. so
our friend Lucky 72/12=6 year
• our guy Lucky compares his both investment and finds the surprising
result.
• A bank deposit takes 12 years to double his money while it takes 6
years to double his money in a mutual fund.
• aha! only half time required to 2x my money. this way I can double my
money every 6 years. Boom!!! i found the 8th wonder of the world.
• thank you all!!! for watching this video. we thought we all learn
something new. And hope you we use this in your practical life. Bye
Bye!!! hope we will meet soon in another video.