The Rule of 114

The Rule of 114

The Rule of 114 tells an investor how long it will take for their money to triple in value.  Here’s an example using a $5,000 investment.

Rule of 114:  Take the number 114 and divide it by the interest rate you hope to receive on your investments.  You have $5,000 invested at 9%, so it will take 12 years and 7 months for your money to triple, earning $15,000.  (114 divided by 9 = 12.666).