Posts Tagged money
Why Study Math – The Mathematics of Finance – Interest – Part I
All right kids. So you hate math and you don’t care whether you do well in this subject or not. But know one thing. Mathematics is the language of money. That’s right. Whether we’re talking interest on CD’s or bonds, dividend yields on stocks, or returns on investment for a business venture, math is the lingua franca—or universal languge. So remember that if you don’t learn math well, you just might be giving an opportunity to some other hungry kid who wants to own more Jordan sneakers than you. Simply put: if you want the goodies in life, you best learn now that math can lead you to the land of fruit and nuts.
Indeed mathematics is the subject that explains how money accumulates and grows over time. What we’re talking about here is interest—compound interest specifically. You see, when you go to your neighborhood bank and deposit a sum of money, the bank pays you for your generosity in letting the bank use that money. What the bank pays you is called interest and the way this is calculated is with the compound interest formula. This formula is the portal, or gateway, to more elaborate financial calculations: annuities, perpetuities, mortgages, and other financial instruments all hinge on this formula. Because of its importance, the compound interest formula is a necessary part of every person’s know-how.
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.