Compounding refers to generating earnings from previous earnings.

Slides:



Advertisements
Similar presentations
Naturally Supernatural
Advertisements

Period 7. (1 … … , (11) (14) work as assembly line bus station divide...into after that at last can't wait to do wrap the doll.
Puzzle A Puzzle B. Replace ? with + – x or ÷ so the results of each of the and 5-number calculations are 15 when working one step at a time from.
Kindergarten Mrs. Stephanie Stringer
Feet. land side without boy once animals life.
Understanding Weather Derivatives – By Prof. Simply Simple TM In the last few years, the monsoons have played truant with us on more than one occasion.
Understanding the Inverse Relationship between Bond Prices & Yields – By Prof. Simply Simple TM Why do bond yields go up when bond prices go down?
Understanding Credit Spreads – By Prof. Simply Simple
Understanding MSS (Market Stabilisation Scheme) and how it helps to control inflation?
List 1 Dolch Phases.
P/E Ratio – By Prof. Simply Simple The P/E Ratio or Price to Earnings Ratio looks at the relationship between a stock price and companys earnings It is.
Making God in Mans Image. Man has always made God in his image Romans 1:18-25.
Who are you?! Show yourself!! Banquo: Yes, show yourself or meet your doom!
Patterns to help you learn your times tables!
“ We Shall Fight on the Beaches” Winston Churchill
Simplifying Call Option – By Prof. Simply Simple TM I hope the last lesson on ‘Options’ helped you in getting to understand the concept. In continuation.
IN THE NAME OF JESUS.
Bringing your life together. Review Goal of this Series Developing active exhilarating faith experiencing God's intervention in our daily life. You can.
List 1.
List 1 Sight Words.
1 John 5: (1 John 5:14b)  John says that “if we ask anything according to His will, He hears us.” This is what Jesus tells us about asking.
Probability Three basic types of probability: Probability as counting
Retirement Planning. Writing Prompt Write one paragraph about the kind of lifestyle you would like to have when you retire. Include ideas on how much.
Section 8A Growth: Linear vs. Exponential
Task Based Reading 任务型阅读综合训练. A story about a Great king.
- Erik Spiller and Keon Massey The Concept of Chess.
Exponential Functions en-GB&v=AmFMJC45f1Q.
OUR FOUR WIVES.
As we bid adieu to 2014, let us look at some of the new year resolutions we all can take to unlock our true potential in the coming year.
15/05/ The joke that brings you luck! Copyright © Dale Carnegie & Associates, Inc.
William Wallace.
Rumpelstiltskin Once there was a very poor miller, who could not even pay his taxes to the kingdom. Because of this, the king ordered.
Mark 6: King Herod heard about this, for Jesus’ name had become well known. Some were saying, “John the Baptist has been raised from the dead,
Noadswood Science,  To understand how micro-organisms cause illness Monday, September 07, 2015.
The Big Bad Wolf and the Friendly Letter Written and Illustrated by: Nancy Fetzer.
Main Ideas. What is a stated main idea? "A stated main idea is the sentence in a paragraph that contains both the topic and the author’s single most important.
Game analysis Robin Burke GAM 206. Outline o Quiz (30 min) o Game analysis o Rules o Play o Culture.
There is a legend that the inventor of the game of chess asked for a reward linked to powers. He wanted on grain of rice on the first square of the chessboard,
Facing the Giants Perseverance and Kindness By: Kaelee Fay April 30 th, th period.
Long Division. We are going to try to solve 837 ÷ 27.
Solving Exponential Equations. Lesson Objective Lesson Success Criteria To explain how to solve equations that contain exponents Can recognise an exponential.
 Once upon a time…  There was a king  Had three sons.
Understanding the difference between “deficit” and “debt”
Copyright © 2011 Pearson Education, Inc. Exponential Astonishment.
Grain of Rice Mary Ji 8East December enter-
Karen Martinez.  The first time I went to The Learning Zone, I didn’t have a child and read to Laura’s daughter. She was a good student and then we played.
Name:________________________________________________________________________________Date:_____/_____/__________ Fill-in-the-Blanks: 1.Theoretical probability.
Sight Words.
Trusting God in all circumstances King David wrote, “Trust in the Lord, and do good; Dwell in the land, and feed on His faithfulness. Delight yourself.
Leaders in the Making Teamwork – Lesson 4 Selfless.
REVIEW OF ACT I l Throne Room of God-4 l Scroll on God’s lap-5 l Lamb to open scroll-5 l Six seals opened-6-9 l John gets another scroll-10 l Seventh seal--11.
France and the Old Regime  Before the revolution France operated on a system known as the Old Regime.  In this system there is an absolute monarch and.
Programming Games of Chance
 Before the revolution France operated on a system known as the Old Regime.  In this system there is an absolute monarch and three social class: clergy.
Let’s----- go play now. Let’s--- go--- play now. Let’s go play--- now---. Let’s go--- play now.
A. and away big blue can come down find for.
Objectives Enabling students  To understand the concept of Grammar  To identify the kinds of sentences  To analyse sentence in terms of subject and.
Unit 2 - Day 1 Exponential Functions
All pupils can recognise patterns in numbers
COMPOUNDING FED TAPERING.
Solving Exponential Functions
Unit 2 Exponential Functions
Sequences and Series.
refers to generating earnings from previous earnings.
Day 91 – Geometric sequences
Unit 2 Exponential Functions
THE KING’s DILEMA.
Presentation transcript:

Compounding refers to generating earnings from previous earnings.

The King of Persia and a peasant sat down one day to play a game of chess. The King, with his noble birth, expensive education, and strategic training was confident of an easy victory. Lets try to understand this with the help of an interesting story…

Said the king to the peasant If you win, I shall give you whatever you ask, However things didnt go as the King had anticipated, and he was defeated Expecting the peasant to demand half the kingdom, his daughter, or worst of all his fluffy Persian cat, the King was pleasantly surprised when the peasant asked for nothing but rice.

If it pleases your Majesty, answered the peasant, I would like one grain placed on the first square of this chessboard, two on the second, four on the third, eight on the fourth, and so on, doubling the number of grains with each square. The King, greatly relieved and thinking the peasant a worthless fool called his minister and ordered him to measure out the rice, put it in a bag, and send the peasant on his way. How much rice? asked the King.

To the Kings horror, his minister informed him that there was not enough rice in the whole World, let alone Persia to honour his deal with the peasant. In the fashion of tyrants when faced with ruin, the King had the peasants head cut off. …now the numbers…

If you wish to calculate how many grains of rice the peasant won, its 18,446,744,073,709,55 1,615, or about 18 quintillion!!

As you can see, if an average grain of rice weighs roughly 10 milligrams, this much rice would weigh about 15 times as much as Mt. Everest!!

This is what is popularly known as the Power of Compounding.

Hope this story succeeded in clarifying the concept of Compounding. Please give us your feedback at