The Rule Of 114

Have you done any ROI analysis to ensure you are on the right track of achieving your investment objectives? Try the Rule of 144.

Similar to the Rule of 72, where we approximate the annual growth rate needed to double our money in Z years, whereas, Rule of 114 can be used to calculate the annual growth rate needed to triple our investment money in Z years.

EXAMPLE 1:

Assume you have invested RM50,000 and expecting for ROI 6% per annum. How many years required to triple your investment money from RM50,000 to RM150,000?

Number of Years Required to Triple Your Money,
= 114 ÷ Annual Return Rate
= 114 ÷ 6
= 19 years

EXAMPLE 2:

Assume you have invested RM10,000 and expecting to triple your money within 8 years. How much of the annual returns required to achieve the target?

Annual Returns Required to Triple Your Money within Targeted Time Frame,
= 114 ÷ Number of Years Targeted to Triple Your Money
= 114 ÷ 8
= 14.25% per annum