1. Is it getting crowded in here?

2. Job Available  Washing glassware in the Chemistry Lab.  1 hour per day for 30 days.  Pay is either:  A - $10,000/day, or  B - $.01 for the first day, and each subsequent day’s pay is double the previous day.

3. Option A  $10,000 per day for 30 days is a total of $300,000.

4. Option B DayPay ($) 1.01 2.02 3.04 4.08 5.16 Week 1 Pay.31 6.32 7.64 81.28 92.56 105.12 Week 2 Pay9.92 Total10.23

5. Option B (continued) 1110.24 1220.48 1340.96 1481.92 15163.84 Week 3 Pay317.44 Total327.67 16327.68 17655.36 181,310.72 192,621.44 205,242.88 Week 4 Pay10,158.08 Total10,485.75

6. Option B (aren’t we done yet?) 2110,485.76 2220,971.52 2341,943.04 2483,886.08 25167,772.16 Week 5 Pay335,058.56 Total335,544.31 26335,544.32 27671,088.64 281,342,177.28 292,684,354.56 305,368,709.12 Week 6 Pay10,401,873.92 Total10,737,418.23

7. Why is that so hard to grasp?  We tend to think in linear terms. Work for 8 hours at $10/hr and you will be paid $80.  Linear growth is expressed as a straight line (assuming you have labeled your axes properly).

8. Exponential growth  Exponential growth starts off slowly, but begins to accelerate in amount of growth.  The rate of growth is constant.  Exponential growth is represented by a “J curve”.

9. Why is this important?  The human population eclipsed 6 billion in the recent past.  The rate of growth has not appreciably changed.  The amount of growth is accelerating.  We will need to feed, house, clothe, and care for many more people in the coming years.  The rate of growth is highest in poor countries.

10. World Population Math  Expressed as b – d = r  In this equation, r represents the rate of growth.  Demographics in this area are always expressed as #/1000.

11. Area Population Math  (b + i) – (d + e) = r  The variables i and e account for movement of people in and out of an area.  Again, the rate of growth is expressed as r.

12. Rule of 72  If r is converted to a percentage, then the doubling time (DT) for a population can be estimated by dividing 72 by r.  Always convert the demographic number to a percent by moving the decimal point one place to the left.  A population will double in 36 years with a rate of growth of 2/1000 (2%).

13. Population Density CountryPopulation (2011 est.) Land AreaDensity (#/sq. mi.) Household Size Household Income Growth Rate Bangladesh151,435,00056,97726585.3$1,4772.13% Canada34,615,0003,849,67492.6$47,4130.33% China1,339,724,0003,696,1003623.4$1,876-0.43% India1,210,193,0001,222,5599905.6$2,3071.59% Japan127,950,000145,8848772.3$61,1200.16% Monaco35,0000.7546,6672.2$278,2590.64% Russia142,914,0006,592,800222.8$1,820-0.67% United States312,417,0013,675,031852.5$67,2280.6%

14. Replacement Level Fertility  Estimated as 2.1 children per couple in developed nations and 2.5 children in developing nations.  If 10 couples (20 people) have a total of 21 children (2.1 children/couple), this population would stay relatively stable in size.  This number accounts for the number of children who will die prior to reproducing.

15. Age Structure Diagrams  Used to represent age distribution and future trends.

16. Population controls in China  Couples are encouraged to pledge to having only one child.  Couples who make and keep this pledge get:  Extra food, larger pensions, better housing, free medical care, and salary bonuses.  Their children get:  Free school tuition, preferential treatment in employment  Couples who violate this policy lose any and all privileges.

17. Population Trends in Baltimore YearPopulationChange 1940859,100 1950949,708+ 10.5% 1960939,024- 1.1% 1970905,759- 3.5% 1980786,775- 13.1% 1990736,014- 6.5% 2000651,154- 11.5% 2010620,961- 4.6%

18. Raw Population Size vs. Number of Tax-paying Households  While the population in Baltimore has continued to decline, the number of tax- paying households “bottomed out” in 2003 and has been steadily rising.  Why?  Single adults and couples without children have moved into the city while families have continued to leave.

19. Life Skills 101  Gross Annual Salary$50,000.00  Taxes (@ 35%)$17,500.00  Net Annual Pay$35,000.00  Net Monthly Pay$ 2708.33  Can you live on this?

20. Monthly Expenses  Rent$700.00  Phone (home & cell w/data plan)$100.00  Groceries$200.00  Car Payment$350.00  Car Insurance$150.00  Gasoline$100.00  Furniture$400.00  Clothes$200.00  Entertainment$400.00  Cable Television & Internet$100.00  Total$2700.00  What’s Left?$8.33

21. How to Amass Wealth  Pay yourself FIRST!!  Determine a monthly budget AFTER putting away a set amount in an investment vehicle.  Always put away your monthly savings.  The Rule of 72 works for investments as it does for populations.  Debt can also accrue quickly, according to the Rule of 72.

22. Investment Vehicles  VehicleAPRInsured?  Checking Account0 - <1%Yes (FDIC/FSLIC) 1  Savings Account1 – 2% Yes (FDIC/FSLIC) 1  Certificate of Deposit2 – 4% 2 Yes (FDIC/FSLIC) 1  Bonds3 – 6% Yes (FDIC/FSLIC) 1  Mutual Fund6 – 9% 3 No  Money Market6 – 9% 3 No  Stocks ?No  1 – Federal Deposit Insurance Corporation/Federal Savings and Loan Insurance Corporation.  2 – Varies with amount invested and term of investment.  3 – Historical average (future returns unpredictable).

23. Debt Acquisition  Debit CardTied to your Checking Account  Charge CardBalance must be paid monthly  Credit CardEssentially a loan, interest rate determined by Credit Rating  Loans and MortgagesInterest Rate determined by Credit Rating

24. Credit  Your Credit Rating is a statement of confidence in your ability and willingness to pay back a loan.  Three Credit agencies gather your financial information and assign a number to you.  A high number is desirable.  Creditors frequently consult this report and adjust interest rates accordingly.  Scores go up like a feather and down like a rock.