Posts Tagged get rich
Why Study Math – The Mathematics of Finance – Interest – Part II
In the first part of this article series on the mathematics of finance, we discussed the compound interest formula and how it is used to calculate the accumulated value of money deposited over time. In this next part, we examine the different methods of compounding and the impact this has on the growth of your money. The interesting thing of all this compounding stuff is that you will see that regardless of how frequently we compound, at some point we reach an upper limit. In other words, frequent compounding helps but at some point you have to do more than just leave your money with “Frequent Compounding Bank USA” to get more of a return. Keep reading.
You may have noticed at your last visit to your local bank a billboard or sign promoting the bank’s aggressive savings and interest programs. You may have seen something like 5.5% rate on your money market with a net effective yield of 5.61%. Sometimes this net effective rate is referred to as the APR or annual percentage rate. Why would there be two different interest rates attached to the same savings plan? Simply put: this is where compounding comes in.
Getting Rich is an Exact Science
This is the second in a series of articles based on the teachings found in the success classic “The Science of Getting Rich”, written in 1910 by Wallace D. Wattles. This book-now in the public domain–is essential reading for anyone who wants to become wealthy.
In the second chapter of “The Science of Getting Rich”, Mr. Wattles explains that getting rich is a science; in fact, it’s an exact science, like mathematics. That is, there’s a series of principles or laws that govern the process of acquiring wealth, and once these are learned and systematically applied by anyone, that person will get rich.