Investment Tips: If you understand these 3 formulas, then profit calculation will be done on the tip of your fingers..

At the time of investment, everyone thinks about profit. Usually, we know how much interest is being received on which scheme. But if we know for how long investing in which scheme will double, triple, or quadruple your money, then it will be very easy to make investment decisions. Here are 3 such formulas with the help of which you can easily find out in how many years your invested capital will double, triple, and quadruple.

This formula is considered very important from the investment point of view. This formula shows how much time your money will double. Most experts consider it to be a fairly accurate formula for calculation. To apply this formula, you should know about the annual interest received on a scheme. After this, you have to divide that interest by 72. This lets you know how much time your money will double.

Understand with an example.
Suppose you invest in Post Office FD for 5 years. Currently, it is getting 7.5 percent interest. In such a situation, when you divide the current interest rate by 72, the answer will be 72/7.5= 9.6. In this way, according to the calculation, your money will double in 9 years and 6 months i.e. about 10 years.

Rule of 114
If you want to know when your money will triple, then Rule 114 will be useful for you. This formula is similar to Rule of 72 and it is used in the same way for calculation. Let us take the example of Post Office FD here as well. To know how much time your money will triple in Post Office FD, you will have to use the formula of 114/7.5. After calculation, the answer will be 15.2 i.e. at a 7.5 percent interest rate, your invested money will triple in 15 years and 2 months.

Rule of 144
Rule 144 tells you how much time your deposited amount in a scheme will quadruple. Suppose you are investing in a scheme in which you are getting 6 percent interest, then 144/6 = 24 i.e. your amount will quadruple in 24 years. On the other hand, if we take the example of post office FD here also and calculate at a 7.5 percent interest rate, then 144/7.5 = 19.2 i.e. at a 7.5 percent interest rate, it will take 19 years and 2 months for your amount to quadruple.

PC Social media