There are many ways to making an investment. But how to make an investment properly, that’s very few people knows. Through this article we will let you know how to make an investment benefit three times more.

However, knowing how many years it will take for your money to double, triple, or quadruple after investing in a particular scheme will make your future work much easier. This will help you understand when your goals will be achieved and allow you to plan your remaining financial investments accordingly.

Here, learn three formulas that will simplify this calculation, allowing you to determine within seconds how many days it will take for your money to double, triple, or quadruple. The Rule of 72 is a popular investment formula that tells you when your money will double at any given interest rate. To use this formula, simply find the interest rate and divide it by 72.

If you invest in Post Office FD at 7.5% interest, then 72 / 7.5 = 9.6. That means your money will double in approximately 9 years and 6 months (about 10 years).

Rule of 114: When will the money triple?

Now let’s talk about the Rule of 114, which tells you when your money will triple. Follow the same method. Divide 114 by the interest rate.

Example

In the same example of Post Office FD,

114 / 7.5 = 15.2

This means your money will nearly triple in 15 years and 2 months. This formula is very useful for estimating long-term investment returns.If you want to know when your money will quadruple, use the Rule of 144. This formula works just like the first two. If the interest rate in a scheme is 6%, then 144 / 6 = 24 years. That means the amount will quadruple in 24 years.

Why are these formulas important?

  • It is easy to make an investment plan.
  • No calculator is required to estimate returns.
  • Different schemes can be compared instantly.
  • It helps in setting the right timeline for long term goals.

Things to note

  • These formulas are approximate, hence the effect of compounding frequency and tax is not included in them.
  • The result will also change if the interest rate changes.
  • If there is market risk in the scheme, then this calculation will not be considered 100% accurate.

Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.