WhaT ISCompound interest rule of 7?

The Rule of 7 is a simple way to estimate how long it will take for an investment to double in value at a fixed annual interest rate. According to this rule, you can divide the number 72 by the annual interest rate (expressed as a percentage) to get an approximate number of years for the investment to double. For example, if the interest rate is 6%, it would take about 12 years (72 ÷ 6) for the investment to double. This rule provides a quick and easy way to assess the growth potential of investments over time.