Private Equity & Exit Opps
What is the Rule of 72, and how do you use it in a PE interview?
Model answer
The Rule of 72 approximates compounding: years to double your money ≈ 72 ÷ annual return (%). At 15%, money doubles in about 72/15 ≈ 4.8 years; at 24%, in about 3 years. Invert it to back into a…
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