## 8 th Wonder Of The World !

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• 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.