Chuck Sears The Rule of 70 is a formula used to estimate how long it will take for an investment or any quantity to double. It is commonly used in finance, economics, and population studies.
if an investment grows at 5% per year, the estimated time for it to double would be:
70/5 = 14 years
This method provides a quick approximation and is useful for calculating growth. It is similar to the Rule of 72, which is another formula used for estimating doubling time. The Rule of 70 is often preferred for continuous growth calculations.
While the Rule of 72 has historical mentions dating back to Luca Pacioli in 1494, the Rule of 70 is more of a mathematical approximation used in economics and finance.
