Are You Smart Enough To Do Compound Interest?

[webmaster]

Subject:Are You Smart Enough To Do Compound Interest?
By: Jason Hommel, Silver Stock Report

Overview: Everyone else out there is writing about how gold topped $1000/oz. Bor-ring! Besides, you don't need me to tell you that. How about some real insight into the gold and silver market? Here it is, if you can understand it.

Link: http://news.silverseek.com/GoldIsMoney/1205512443.php

[paker]

Let me be the first to say "huh"? When does 10% of anything = 1.1% of something?

[JesterJay]

"...if you started with $200, and saw it gain 10% twice in a row!"
To see how much you have if you gain 10 percent you have to multiply by 1.1 so you have the total of what you HAVE. NOT just what you gained.
So to answer the question you have to figure out the 10% gain twice:
$200 x 1.1 (that's ONE ten percent gain) x 1.1 (that's the second ten percent gain) = 200x1.1 (this part equals 220) then that (220)x1.1 which amazingly does equal 242!

Sure he did not use spectacularly clear language but I know what he is talking about. People CAN'T even count back change properly anymore.

Would you like fries with that?
JesterJay

Originally Posted by paker

Let me be the first to say "huh"? When does 10% of anything = 1.1% of something?

[paker]

Originally Posted by JesterJay

People CAN'T even count back change properly anymore.

Blame the schools and teachers that allow students to use calculators to do math.

[JesterJay]

OK I can't resist. Every time I buy something and the total is odd change (almost always) I do a little experiment to test the "IQ" of the cashier.
Case in point:
The total was $5.67, I gave her (the teenie bopper cashier) a $10 bill, 3 quarters, and 2 pennies. That's $10.77. Change is easy. It's $5.10. A five dollar bill and a dime. SIMPLE, right? No
I almost ALWAYS get a "what the fuhhhhh..." look followed by a bunch of "um"s, "uh"s and "oh kay"s.
This is the record goof up on this transaction: two fives, 33 cents and a one dollar bill for change. MORE than I gave her to begin with.
Yes, I returned the overage and gave a short "counting change back" lesson. The girl said, "Oh, that's not so hard. Why don't I know how to do that?".
You tell me,
JesterJay
I know they teach this stuff in school. My 14 year old can count back change.

Originally Posted by paker

Blame the schools and teachers that allow students to use calculators to do math.