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Finance- the rule of 70

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The General Principle of Exponential Money Growth

In finance - the rule of 72, the rule of 70 and the rule of 69.3 all refer to essentially the same method for estimating doubling times for exponential growth or halving times for exponential decay. If you divide the number given by the expected growth rate, expressed as a percentage, the answer is approximately the number of periods to double the original quantity. For instance, if you were to invest $100 at 9% per annum, then your investment would be worth $200 after 8.0432 years, using an exact calculation. The rule of 72 gives 72/9 = 8 years, which is close to the exact answer.

You can manufacture exceptional results with some solid research, and then deploying that knowledge. There’s a lot more to Compounding than the math. Lets say you calculate your retirement fund of $3000 will become $22,836.76 in 30 years at a guaranteed 7% interest rate. What if you could find some other vehicle to grow your money?

If you apply the instructions you have learned to prospecting for clients, you can reach thousands of people! Thousands of people helping you increase your net-income, knowing that others will help them do the same.

The arithmetic proves The General Principle of Exponential Money Growth, Simple Stuff That Works.

In mathematics, a quantity that grows exponentially, or geometrically, is one that grows at a rate proportional to its size. There are several big name Internet marketers who have taken a tiny investment of $10, $20 or $40 and make it explode into thousands of dollars in sales.

Is it too good to be true?

Such growth is said to follow an exponential law (also see Malthusian growth model*). This implies that for any exponentially growing quantity, the larger the quantity gets, the faster it grows. But it also implies that the relationship between the size of the dependent variable and its rate of growth is governed by a strict law, of the simplest kind: direct proportion. It is proved in calculus that this law requires that the quantity is given by the exponential function, if we use the correct time scale.

The general principle behind exponential growth is that the larger a number gets, the faster it grows. Any exponentially growing number will eventually grow larger than any other number which grows at only a constant rate for the same amount of time (and will also grow larger than any function which grows only subexponentially).

This is demonstrated by the classic riddle in which a child is offered two choices for an increasing weekly allowance:

the first option begins at 1 cent and doubles each week, while

the second option begins at $1 and increases by $1 each week. Although the second option, growing at a constant rate of $1/week, pays more in the short run, the first option eventually grows much larger:

Week: Option 1 Option 2
0 1c $1
1 2c $2
2 4c $3
3 8c $4
4 16c $5
5 32c $6
6 64c $7
7 $1.28 $8
8 $2.56 $9
9 $5.12 $10
10 $10.24 $11
11 $20.48 $12
12 $40.96 $13
13 $81.92 $14
14 $163.84 $15
15 $327.68 $16

Seed Money for your Money Tree

Exponentially growing your money is simply turning a few dollars into thousands. We have heard that it takes money to grow money. Well that's true, however, almost anyone can get a little "seed" money and with the right knowledge, grow that seed into a high yield money tree.

Real money is not made by a one time selling of a product or service. In order to grow your seed money into a fruit producing business, you will need to have recurring sales to a good amount of loyal customers. Also known as repeat business.

Free Money, only cost you $10

What if you bought a pack of peanut seed for $10 and planted them in fertial ground? You then watered and cared for the plants until they matured. From the $10 sack of peanuts, you could harvest a bushel of peanuts; exponential growth. Likewise, if you could put $40 into a company that yield Thousands, that's like Free money for only $40.

All legitimate business activities create wealth in some way or contribute to the creation of wealth. When you create a product that is worth more than what it cost to produce, you have created potential wealth. When you perform a service which is worth more than it cost to provide, then you have created potential wealth.

Example: When you have taken ingredients worth a dollar, and used them to create a product worth two dollars, you've created a dollar's worth of new potential wealth. Exponentially growing money** has no limit. The worth of your product or service can span many generations and countries.


*Malthusian Growth Model

In 1798 the Englishman Thomas R. Malthus posited a mathematical model of population growth. He model, though simple, has become a basis for most future modeling of biological populations. His essay, "An Essay on the Principle of Population," contains an excellent discussion of the caveats of mathematical modeling and should be required reading for all serious students of the discipline.

According to Malthus, if a population of 100 individuals increased to a population 135 individuals over the course of, say, five years, then a population of 1000 individuals would increase to 1350 individuals over the same period of time.

The assumptions about saving rate, depreciation, and so forth imply growth in labor productivity of 2.5 percent per year. Balanced growth path is a path along which capital and output grow at the same rate.

**Exponentially growing money

A crucial difference between money growth and population growth, however, is that money can increase without limits while population can't. The population of any living creatures is constrained by the availability of food, water, land, shelter and other important resources.

Best regards,

Sherwood


The 2,000 Percent Solution Workbook: Practical Questions, Exercises and Suggestions to Create Exponential Performance Gains through Applying the Principles in The 2,000 Percent Solution [Paperback] Donald Mitchell (Author), Carol Coles (Contributor)

The 2,000 Percent Solution Workbook has already created enormous improvements for millions of people and will help you turn your greatest goals into reality. With The 2,000 Percent Solution Workbook, your business can make more progress in one year than it would normally make in several decades. You receive step-by-step help to accomplish 20 times your usual results with the same time and effort, or to enjoy the same results with 1/20th the time and effort: That’s the promise of The 2,000 Percent Solution Workbook.

The 2,000 Percent Solution Workbook: Practical Questions, Exercises and Suggestions to Create Exponential Performance Gains through Applying the Principles in The 2,000 Percent Solution

 

Exponential: How You and Your Friends Can Start a Missional Church Movement (Exponential Series) [Paperback] Dave Ferguson (Author), Jon Ferguson (Author)

Authors Dave and Jon Ferguson communicate a simple strategy that will engage millions of Christ followers and challenge every church leader to become a reproducing follower and leader. Exponential lays out a brief but solid theology for a reproducing strategy, giving practical 'how-to's' for reproducing Christ followers, leaders, artists, groups/teams, venues, sites, churches, and networks of churches. Weaved throughout this book is the amazing story of Community Christian Church, which was started by five friends who used the reproducing strategies found in Exponential to grow one of the most influential churches in the U.S. and develop a network of reproducing churches. Many of today's Christians consider the missional challenge of Jesus---feed the hungry, comfort the lonely, bring people to God's Word---as inspirational but not something that's achievable. Or, they've heard the challenge of Jesus and are frustrated with how little they've done. Jesus gave his followers this mission because he wants them to hear it, be inspired, and then actually do it ... Exponential will show them how. Exponential is the anchor book in the Exponential Series.

Exponential: How You and Your Friends Can Start a Missional Church Movement (Exponential Series)


Forex - Foreign exchange market

Forex (foreign exchange market; FX, or currency market) is a global, worldwide decentralized financial market for trading currencies. The foreign exchange market determines the relative values of different currencies. Financial centers, around the world, function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends.

Business / Investing : Personal Finance; Global Investment Strategies - World Class Investment e-learning programs, for retail and institutional investors. Learn the smart way to trade and invest in Forex and Equities.

The foreign exchange market has a huge trading volume that represent the largest asset class in the world, leading to high liquidity. It has geographical dispersion; continuous operation - 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday. In a typical foreign exchange transaction, a party purchases a quantity of one currency by paying a quantity of another currency.

Basically, the foreign exchange market assists international trade and investment, by enabling currency conversion. For example, it permits a business in the United States to import goods from the United Kingdom and pay pound sterling, even though its income is in United States dollars. It also supports direct speculation in the value of currencies, and the carry trade, speculation on the change in interest rates in two currencies (In the forex market, speculators buy high-interest-rate-bearing currencies and sell currencies with low interest rates).

You may also be interested in:

DreamSphere - FOREX Launch! - DreamSphere Live Trading Room is an Ever-Green product.

Secrets To Penny Stock Investing - Brand New Stock/Investor site in the marketplace!


Corporate Finance (with Thomson ONE - Business School Edition)

Focus on the financial concepts, skills, and technological applications that are most critical for MBA students in today's workplace with Ehrhardt/Brigham's CORPORATE FINANCE: A FOCUSED APPROACH, 4E. This lean text provides an in-depth treatment of all topics essential to corporate finance within a streamlined presentation that you can complete in a single semester. Your students review the latest financial developments -- from the collapse of the sub-prime mortgage market to the financial and global economic crisis -- as this edition shows them how to maximize a firm's value in today's changed world. Numerous recent examples illustrate the relevance of what students are learning, while Excel Tool Kits, "Build a Model" problems, and Mini-Case Spreadsheets help students master the many functions of Excel. Students even gain hands-on experience with the same tool Wall Street professionals use daily with new Thomson ONE-Business School Edition problems. Trust this book's concise, focused presentation to clearly demonstrate how and why corporations make specific financial decisions.

Corporate Finance (with Thomson ONE - Business School Edition) (Available Titles Cengagenow)

 

Financial Management: Theory & Practice (with Thomson ONE - Business School Edition 1-Year Printed Access Card) [Hardcover] Eugene F. Brigham (Author), Michael C. Ehrhardt (Author)

Give future and current managers a thorough understanding of the financial theory that is essential for developing and implementing effective financial strategies in business today. Brigham/Ehrhardt's leading Financial Management: Theory and Practice (13th Edition) is the only text that strikes a perfect balance between solid financial theory and practical applications. Readers gain a strong working knowledge of today's changed financial environment as this edition examines recent financial crises, the global economic crisis, and role of finance in the business and students' personal lives. This book's relevant presentation, numerous examples and emphasis on using Excel spreadsheets shows readers how to increase the value of a firm. Integrated practice using Thomson ONE-Business School Edition gives readers hands-on experience using the same research tool Wall Street professionals rely upon daily. This book is both the ideal choice for today's introductory MBA course as well as a valuable reference tool for students throughout their academic and business careers.

Financial Management: Theory & Practice (with Thomson ONE - Business School Edition 1-Year Printed Access Card)

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