Re: RE: [Edu-sig] Financial calculation
----- Original Message ----- From: Kirby Urner <urnerk@qwest.net> Date: Monday, February 14, 2005 2:41 pm Subject: RE: [Edu-sig] Financial calculation
Though maybe my calculations need to be checked, in Python.
And I still don't own any Apple.
Art
Why is it useful to take a sudden spike in a stock, use that to derive an annual growth rate of 500%, and plug that into a compound interest formularunning out 10 years?
Why is useful to repeat the story of the King and the grains of wheat and the chessboard? I assume you know my reference. Same reason, different era.
By the same reasoning, finding a $100 bill on the sidewalk will make me a gazillionaire, so I should just quit all my jobs and retire.
Only if you can find a why to compund it a 500% over some substanital time period. Else you just found $100. That used to buy a nice pair of shoes.
Over on the Wittgenstein list, we call this "language idling" (i.e. doing no work).
If you say so. Art
Kirby
Why is useful to repeat the story of the King and the grains of wheat and the chessboard?
I assume you know my reference.
I do. The point is that exponential functions get big fast. That's why in the real world you can't project rates of return that way. These are mathematical abstractions that quickly break down when applied to human affairs.
Same reason, different era.
I don't think it's a point computer geeks need reminding of. But I guess it's impressive when there's a dollar sign in front (makes it look more like Perl).
By the same reasoning, finding a $100 bill on the sidewalk will make me a gazillionaire, so I should just quit all my jobs and retire.
Only if you can find a why to compund it a 500% over some substanital time period. Else you just found $100.
Exactly. Nor does Apple have a way to pull this off -- quite obviously.
That used to buy a nice pair of shoes.
Over on the Wittgenstein list, we call this "language idling" (i.e. doing no work).
If you say so.
I do. It's work if you're still learning what exponential functions are, but this has nothing to do with actual financial planning. Kirby
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Kirby Urner