In the post titled “The Number 72“, we learnt an useful formula – how to calculate the number of years required for a given amount of money to double at a specified rate of interest. Now suppose double is not cool enough for you. You want to know in how many years your money would triple!
Here, comes another number to help you estimate: 114.
Picture Credit: pt.wikipedia.org
You guessed it right, the formula is:
(Number of years to triple) x (Rate of Interest p.a.) = 114
So, now following the example in the previous article (click here to access it), if someone promises you a rate of return of 9%, know that your money would be doubled in approximately 12.67 years, i.e., 12 years and 8 months.
Do the math!
Note: This is an estimate to be used to make your life easier and does not give an answer accurate to the number of days. Also, the higher the expected rate of interest, the less accurate does the formula become but still you can use it safely!
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