It will take you 17 years to pay back the entire amount. Then you only pay the minimum payment on it. Here’s how compound interest impacts you in your life everyday.įor starters it’s something that works against you every day. That’s all great, but do we ever really use compound interest in our life, like ever? Plus you can keep sowing the apples each year and they will keep multiplying the output at the end. The point is to understand how big compounding can get from simple interest. This is the gist of compounding… Now before you start poking holes like, where would you get the land to plant this, wouldn’t so many apples be wasted, or how would you harvest… To the tune of 1,250,000 X 500 in 5 years will be… More than I can multiply in my mind. And in another year this will become astronomical. You could keep planting these apples also. Plus the original tree, so 2501 trees giving you apples. That’s 2,500 at the end of the 15th year giving you fruit. How many apple would you be harvesting now? So you will only harvest when the fruit you planted in the 10th year mature, which will be in the 15th year. Then you will start harvesting but not immediately.Īnd just to simplify this a little further, since you are planting all the apples from this tree for 5 years, we’ll assume that you wait for the last plantation to mature before you actually start to benefit from this plantation. Let’s say you will plant all the fruit from the first tree for 5 years only. Getting another 500 trees in the second year.įor simplicity. You can take those apples and plant them. So each year the tree produces about 500 apples. Let’s say in 5 years it starts producing fruit. When you take the fruit from the tree and start sowing that. ![]() And give away this apple pie to your family and friends so they can share it with their family and friends.īUT this is still just simple interest. You can make an apple pie every day for the rest of your life. You can even give apples to your family and friends. ![]() You can now eat an apple for as long as you want. Once it does it will keep giving you fruit for a eons. And still after what appears to be a longer time will it start giving fruit. But as time passes, as the seeds comes out, you will start seeing it grow in your life.Īfter what seems like a long time you will see a tree. You don’t even know if it’s giving you any benefit for the first few months. If you make apple pie out of it, maybe you can share it with your family maybe even invite a few of your friends.īut if you sow it, you won’t see it for a few years. You can eat it, make apple pie out of it, or sow it to get an apple tree.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |