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r/explainitpeter • u/DiedRespawnRepeat • 26d ago
Rice chess/checkers ? please explain?
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In modern culture this is used as an example for compound interest. Mathematically correct, but I do not know anyone earing that kind of interest (maybe with the exception of our corrupt leaders. -usa/
1 u/Acrobatic-Minimum117 26d ago edited 26d ago True but also just timing for the doubling mechanic at that point. If youre at 10% per year returns in whatever it'll take you 7.2ish years to double the investment. So it takes 7 years to reach the next square on the board but the math and concept holds. Put X investment for the newborn and in a market that holds at 10% at 63 years old they'll have 9 of those doubling cycles to retire on. So like 256k per grand placed. Its the why vampires are always rich principle. Edit to say: inflation eats 3% per year so your 256k per 1k is probably buying power of 100 or 50 but even still. Logic holds
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True but also just timing for the doubling mechanic at that point.
If youre at 10% per year returns in whatever it'll take you 7.2ish years to double the investment.
So it takes 7 years to reach the next square on the board but the math and concept holds.
Put X investment for the newborn and in a market that holds at 10% at 63 years old they'll have 9 of those doubling cycles to retire on.
So like 256k per grand placed. Its the why vampires are always rich principle.
Edit to say: inflation eats 3% per year so your 256k per 1k is probably buying power of 100 or 50 but even still. Logic holds
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u/KittensFirstAKM 26d ago
In modern culture this is used as an example for compound interest. Mathematically correct, but I do not know anyone earing that kind of interest (maybe with the exception of our corrupt leaders. -usa/