Investment: Hard earned money is invested in various ways for the future. There are many ways like banks, stock markets, mutual funds. But, if you invest Rs.1 lakh in how many days will it double or triple? It was already known. Let’s know what rule to follow for that.
Investment: People save or invest for future financial goals like children’s education, marriage, retirement. However, they wonder whether the investment they make is sufficient for their financial needs. Many people wonder how long it will take for their money to double when they invest their hard-earned money in one way. However, there are mathematical methods and formulas for such people to know how many years their investment will double or triple. Those who have invested Rs.1 lakh in this order can know by these formulas how long their investment will double i.e. Rs.2 lakhs and triple i.e. Rs.3 lakhs. Now let’s find out how.
There is a rule to know very easily how long it will take to double or triple your investment. Same as Rule of 72 or Rule of 114. Using these rules will tell you how many days your investment will double. But, let us now know how they work.
How Does Rule 72 Work?
This Rule of 72 can be used to determine how many days your investment will take to double. Divide 72 by your annual interest rate to determine how many years it will take. For example, suppose you have invested Rs.1 lakh. Suppose the annual interest rate is 8 percent. Then 72 is divisible by 8. That means 72/8= 9.. According to this your investment of Rs.1 Lakh after 9 years will be Rs. 2 lakhs will be.
Rs. When Will 1 Lakh Triple?
Rule 114 operates like Rule 72. By this rule you can know how long your investment will triple. Suppose you have invested Rs.1 lakh. Assuming your annual interest rate is 12 percent, you would divide 114 by 12. That is 114/12= 9.5 According to which it will take 9.5 years to double your Rs.1 lakh to Rs.2 lakh.
The interest rate on your investment will determine how much your money will grow. As stated in Rule 72, when your interest rate is 8 percent, Rs.1 lakh will take 9 years to double. So if your annual interest is 12 percent then you will double it in 6 years. Also, to quadruple your investment, divide 144 by your interest rate. Assuming your annual interest rate is 8 percent, your money will quadruple in 31.44 years.
