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The Rule Of 72

CalculatorThe Rule of 72 is a simple formula that lets you estimate how long it will take an investment to double at a stated interest rate. You simply divide 72 by the prevailing interest rate.

For example, if you’re investing $1,000 at a 6% rate, it will take 12 years for you to accumulate a total of $2,000.

This rule does not reflect any tax consequences. Assuming your $1,000 gain qualifies as long-term capital gain, you will have to pay 20% of your profit, $200 in taxes.


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This web site and these articles are not tax or legal advice and are not intended as tax or legal advice.  They are intended to provide only general, non-specific legal information and are not intended to cover all the issues related to the topic discussed.  The specific facts that apply to your matter may make the outcome different than would be anticipated by you.  This web site and these articles are based on United States law.  You should consult with an accountant or lawyer familiar with the issues. This web site and the articles contained on this web site are not solicitations.

Contact Info:

Ronald Semaria
Semaria Consulting
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Brooklyn, NY 11234
Email: info@semaria.com

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