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Reverse rule of 72: an investment doubled in 6 years. Roughly what annual compound return did it earn?

Model answer

About 12%.

The rule of 72 works in both directions: rate ≈ 72 / (years to double) = 72 / 6 = 12%.

Exact answer: 2^(1/6) − 1 ≈ 12.25%, so the shortcut is very…

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