Rule of 114
In this rule, we get to know how much time required to triple your money at a given rate. This is a shortcut rule. In simple words, in this rule, we just divide 114 by interest rate. This is a very useful formula to know how much time required to tripling the money quickly. This is one type of simple thumb rule and useful for handy calculations, arrive at approximate value without the use of any applications.
114 / annual rate of interest.
For example:
Principal Rs. 100,000
Rate of Interest 6 per cent.
if you want to know how long it will take to triple your money at 6% interest, divide 114 by 6 and get 19 years. It will take 19 years triple the money.
For example:
A person invested Rs 200000 in mutual funds. These funds have given 15 per cent returns. Now by applying the 114 formula (114/15) we get 7.6 years. In this example, money gets tripled within 7.6 years.
Other investment thumb rules are
Rule of 72
In this rule we get to know how much required double your money.
Rule of 69.3 (Doubling the money for Compound Interest)
Rule of 144 (Quadruple)
Rule of 70 (Inflation)
Conclusion:
In this article, we get to know about the rule 114 formula and how it will calculate. This is an investment thumb rule. Dear readers if you know anything more kindly comment, this is very helpful for other readers.
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