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8 th Wonder Of The World !

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  • Aancy
    How to become rich with just $ 100 If compound interest is so simple that it is taught in high school, how come it took a
    Message 1 of 1 , Aug 2, 2006
      How to become rich with just $ 100 <http://milliondollar.50webs.com/>

      If compound interest is so simple that it is taught in high school, how come
      it took a brilliant man and arguably the greatest scientist in the world to
      call it the 8th wonder of the world? <http://milliondollar.50webs.com/>

      Was it to remind us that we forgot about a magic
      theory?<http://milliondollar.50webs.com/>Really, understanding
      compound interest is very, very difficult. The human
      mind does not comprehend such growth so easily. We in our physical selves
      have a simpler type of growth. So we do not comprehend compounding of
      growth. A few old, really old stories might just help.

      Let us start with the famous story of the Persian emperor who was so
      enchanted with a new 'chess' game that he wanted to fulfill any wish the
      inventor of the game had. This inventor, a mathematician, decided to ask for
      one seed of grain on the first square of the chessboard doubling the amounts
      <http://milliondollar.50webs.com/>on each of the following squares.

      The emperor, at first happy about such modesty, was soon to discover that
      the total yield of his entire empire would not be sufficient to fulfill the
      'modest' wish. The amount needed on the 64th square of the chessboard equals
      440 times the yield of grain of the entire planet. Just try converting into
      money in any currency and you will realize the importance of
      compounding.<http://milliondollar.50webs.com/>

      A similar analogy is that one penny invested at the birth of Jesus Christ at
      4 per cent interest would have bought one ball of gold equal to the weight
      of the earth in the year 1750. In 1990, however, it would buy 8,190 such balls
      of gold. <http://milliondollar.50webs.com/>

      At 5 per cent interest it would have bought one ball of gold by the year
      1466. By 1990, it would buy 2,200 billion balls of gold equal to the weight
      of the earth. <http://milliondollar.50webs.com/>

      The example shows the enormous difference 1 per
      cent<http://milliondollar.50webs.com/>makes. It also proves that the
      continual payment of interest and compound
      interest is arithmetically, as well as practically, impossible.

      Just see what a difference it would have made if your great grand father had
      invested in a bank fixed deposit only $ 100 say 150 years back. What it
      would have grown to? <http://milliondollar.50webs.com/>

      For more details click here <http://milliondollar.50webs.com/>


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