[Edu-sig] Financial calculation

[Kirby Urner]

> 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