Compound Interest and the "Rule of 72". Do a little research and explain the concepts of Compound Interest and the "Rule of 72". Write your explanation in Blog #4. Title of blog: "Compound Interest and the Rule of 72". What is it about compound interest that inspired Albert Einstein to say "The most powerful force in the universe is compound interest". Use a Compound Interest calculator to see just what happens to money when Compound Interest is applied.Links about Compound Interest.
"Compound interest is interest that is paid on both the principal and also on any interest from past years. It’s often used when someone reinvests any interest they gained back into the original investment. For example, if I got 15% interest on my $1000 investment, the first year and I reinvested the money back into the original investment, then in the second year, I would get 15% interest on $1000 and the $150 I reinvested. Over time, compound interest will make much more money than simple interest. The formula used to calculate compound interest is:
M = P( 1 + i )n
M is the final amount including the principal.
P is the principal amount.
i is the rate of interest per year.
n is the number of years invested.
Applying the Formula
Let's say that I have $1000.00 to invest for 3 years at rate of 5% compound interest.
M = 1000 (1 + 0.05)3 = $1157.62.
You can see that my $1000.00 is worth $1157.62."
http://math.about.com/od/formulas/a/compound.htm
Friday, March 13, 2009
Wednesday, March 11, 2009
My Recession Spending
Students will do a reading about America's consumption habits and the fact that we have outsourced much of our industry. Then students will work on Blog #3. Title of Blog: "My Recession Spending". Read this article about changing spending habits during the recession. Then explain how you will alter your own personal spending habits. What will you do differently during "The Great Recession".
During the great recession I wouldn't buy things that I wouldn't "need". I would buy things that I would need like grocery, clothes etc. I wouldn’t over indulge in things that I don’t really need things like The Banana Holder, The Auto-Adjusting Wrench, The Battery-Powered Spinning Bottle, The Fuzzy Toilet Seat Cover, The Paper Weight, The Mechanized Egg Cracker, The Baby Wipes Warmer, and The Leaf Blower. Some of these stuff are pretty useless and why would you need something to do something that you can do your self. This useless stuff that American consumers want are decreasing natural resources like energy, raw material, mineral deposits etc. I mean some of these products might be helpful for the handicapped but not everyone in America is handicapped. During the great recession, I would reuse, reduce and recycle. Try to not buy things that I need not want because some of the things we want aren’t very useful and or needed.
During the great recession I wouldn't buy things that I wouldn't "need". I would buy things that I would need like grocery, clothes etc. I wouldn’t over indulge in things that I don’t really need things like The Banana Holder, The Auto-Adjusting Wrench, The Battery-Powered Spinning Bottle, The Fuzzy Toilet Seat Cover, The Paper Weight, The Mechanized Egg Cracker, The Baby Wipes Warmer, and The Leaf Blower. Some of these stuff are pretty useless and why would you need something to do something that you can do your self. This useless stuff that American consumers want are decreasing natural resources like energy, raw material, mineral deposits etc. I mean some of these products might be helpful for the handicapped but not everyone in America is handicapped. During the great recession, I would reuse, reduce and recycle. Try to not buy things that I need not want because some of the things we want aren’t very useful and or needed.