interest sa time deposit

[lorenzoleo]

---

Let's do simple mathematics, this is what is love during my engineering years.

Solve this problem given i = 7% per anum , whne will your money doubles?

You can use Rule of 72 or the hard way using natural logarithm

This is the real financial education, theory plus application.

The problem of our society is that, this formula was tought in school but no one doesn't know where is the real application.
You want real application? get some appointment with me.



Then tell me if ilad bah ang long term.

Cge another pa na link para tanan diri ma educate financially http://en.wikipedia.org/wiki/Compound_interest

[lorenzoleo]

Let's give logical facts to support emotional facts.

[lorenzoleo]

lets continue the solution to derive Rule 72

from the formula:

n = (ln 2)/(ln(1+i))

Approximation

n = (ln2)/ i

n= (0.6931/i) x (100/100) <-- in percentage

n approximately equal to 69/i, or 70/i, 72/i <- Ok I have finished deriving rule of 72
Rule of 72 - Wikipedia, the free encyclopedia

[lorenzoleo]

It is very nice to start saving at young age. There are alot of companies out there (aside from banks) that gives 7% to 8% return.
Bonds, insurances, Fixed income funds. They give higher interest rate compared to time deposits.

Wanna learn more? join with my team in IMG. I can teach you more things about this if you want to. Send me a private message and set appointment. Want to learn more about Financial Education? this is the only company right now who teaches their clients about this stuffs, it's not only focusing in selling insurances and investment securities, the main focus of the company is to educate middle income families financially.

That is the difference of IMG than with traditional agents. We also give business oppurtunity to the people by sharing this information to your families friends, realtives, collegues. Ayaw lang kahadlok sa mathematics kay dili tamo pa solvon, Hehehe!

[MeMing]

hehe... nice spiel lorenzoleo...

So let's say, if Invest 500k at 7% compund interest per anum, how much will that be in 5 years?

I don't live by formulas. I live by results. You have showed formulas of what you have learned or read or watched somewhere. I have done this in real life. Do you think you did better?

Please go back to the question. How much will my 500k be in 5 years given your NICE formulation.

By the way, I am 27 years old, a degree holder of BS Accounting. So, I know those values. I have read the books that were written by American authors because they are supposedly the gurus in the field. Where are they now with their ACCRUAL ACCOUNTING METHOD and all those complex derivatives? Not to mention all the mess their so-called plastic money (credit card) has made?

Also, one of your agents already came to my office like 6 months ago, and believe me, I took him to school rather than the other way around.

Anyway, how much will my 500k in 5 years?

PS: Know this very nice acronym: KISS = KEEP IT SIMPLE STUPID.

[cirext]

Hey..that's foul! Just keep this thread professional.
U can present ur arguments mathematically..i personally dont have problems with that.
Bro lorenzoleo, hinay-hinay lang sad bro kay basi ug hambog na ang dating sa uban bah..
Dont b carried away with ur individual pride guys..
Ug pahambugay ta dri.. wala bayay magpapildi nato.

Pareha man mi ni lorenzoleo nga Engineering, i understand him well..
We love these kind of formulas w/c look complicated but actually simplifies things..
We also love to derive formulas from principles.
But i also think, conveying it here is unnecessary.
He's also younger than us bro.. Kita pareha rata ug edad..

Let me try to solve ur stated problem based on F = P(1+i)^n
F the principal is 500k it would grow to 701,275.87 after 5 yrs using 7% interest rate.
So, whats ur next point bro?....


For employees, this is better than the bank & piggy bank savings
Sa business, this growth of investment is too slow..
In business cguro..ur target would be 100% profit in a month
Which is actually very feasible.

[cirext]

Example, invest ka ug 50k sa business this month, then after the month ends u have 100k na
If u do it in a year, ur 50k would actually yield 600k clean profit
If u do it n 5 years, ull have 3M clean profit.
See, n business ur not depending on interest..
Ur not letting ur money sleep & hope to see it fatter when it wakes up.
Ur actively making it grow. And the difference is very big.

Better than savings is time deposit
Better than time deposit is mutual funds
Better than mutual funds are stocks or bonds probably
But the best of all is always active business.

[MeMing]

Why foul? Which part? The KISS part? Sorry but no offense intended. I just felt he should know that especially since he asked me if I knew Warren Buffet. His the perfect example of someone who loves to KISS and believe me, he need not those formulas. I bet he knows this already, or at least I hope so, the man only has a ONE (if i'm not mistaken) of instructions for anyone who handles his businesses - DO NOT LOSE YOUR INVESTORS MONEY.

That's how real businessmen think. Results tell all no matter HOW YOU COMPUTE OR DO THE MATH. Maski 1+1 pa gani pwedi nana sa negosyo or sa business world. Although there are others who like to COMPLICATE matters that are already COMPLEX as they are. Ana man gyud siguro ang uban tao.

Anyay, is the 700k figure you showed using the COMPOUNDED INTEREST lorenzo mentioend? If so, LUGI GYUD KAAYO MO ANANG KALAKIHA. apsan pa gani mo sa inflation rate ana kung magkalisud. As what I've said earlier, you are better off looking for a RELIABLE BANK that will offer the DOUBLE YOUR MONEY scheme that I have mentioned a number of times already.

Why do I always mention that like I get money for mentioning it? Because I, like lorenzo and cirext would also like to share my experiences and not just what I have read or studied and most especially, not just what other people are saying.

In any investment vehicle or business engagement that anyone gets into, he/she should at least make the double-your money a threshold. If your investment portfolio does not guaranty that you double your money 5 years, then you are better off with the latter. Makes sense? Asa man ka? Sa mas gamay kita unya dili pa gyud sigurado? Or sa dako2 gamay ug kita unya sigurado unya wala pa gyud kay hasol kay dili na nimo kinahanglan bantayan?

If you are planning to put-up a business, if your initial investment does not at least double in 3 years, if you factor in all the hassles and headaches you have to go through (although they might be great learning experiences - way better than spending for a masters degree in my case), then you might as well consider going the double your money scheme for the convenience and security it brings.

Again, the double your money scheme should be a threshold for anyone who is planning to get an investment vehicle or put-up a business.

and Cirext:
Your belief of a business that will double your initial investment in just a month is extremely optimistic. IF you are certain of that, you should PM me right away and let's see what we can do about it. Nindota kaha ana imong nahuna2-an nga negosyo dah. Sobra paman pyramiding scheme ana kay atong 50k mahimo gyung 3M in 5 years lang. Please PM me ana beh.

lastly:
Dili man sa nahambogan ko ni lorenzo or dili ko palubig, ang ako lang kay sakto makita gyud nato unsay mas nindot bitaw nga choice para sa TS ug sa uban nibasa. mao nahan ko makatubag siya sa akong pangutana kung pila ang 500k after 5 years gamit sa iyang formula kay iyang formula murag copy paste raman sa internet gud - anyone can do that. mas nindot gyud ng naay example diba sama ani ron. pagtubag nimo, mas klaro na nga dili gyud ko ana nga investment vehicle kay para nako, apsunonon ra sa inflation gamay.

Wala man koy paki kung sakto si lorenzo or ikaw ba ron kaysa nako. kanindot ra ana ahh naa koy nakat-unana bag-o. Tingali pa diay makakuha nako ug investment vehicle sa IMG this time around kay last year, wala man ko na sold-out sa ilang gi-offer basing lang sa threshold nga akong gi-presentar diri...

[pogy_uy]

how about we try them all? (para everybody happy)

1. Active business

Once naa nay surplus of funds then we can put it equally in

2. Long Term Investments by IMG or other bank affiliated brokers

and

3. Double your money schemes offered by STABLE banks.

OT: Kabatch raman tali ta sa ECE sa USC TC. I'm 26. Lets remain humble guys. If mag pa hangin man gani... bawi.un dayun. hehe! PEACE!

[MeMing]

Now that would be a great portfolio of investments and you are not putting all your eggs in one basket... the problem is, not everyone will have the resources to even get into one of the 3 you have listed...

ang double your money lang daan kay at least 6 figures na if not 500k minimum... realistically speaking in our country, top 10% ra siguro sa population makakupot ana walay labot sa mangutang ha.