Benjamin Garden on Simple vs. Compound Interest in Finance – The Central Equilibrium – Episode 5

I am so pleased to publish this new episode of “The Central Equilibrium“, featuring Benjamin Garden.  He talked about simple and compound interest in the context of finance and investment, highlighting the power of compound interest to grow your money and to enlarge debt from credit cards.  We compared the formulas for calculating the accrued amounts under simple and compound interest, and we derived the formula for the Rule of 72, a short-cut to estimate the length of time needed to double your investment under compound interest.

Check out Ben’s blog, Twitter account (@GardenBenjamin), and Instagram account (@ben.garden) to get more advice about managing your money!

Part 1:

 

Part 2:

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Eric’s Enlightenment for Tuesday, May 12, 2015

  1. A great list of public data sets on GitHub – most are free.
  2. Is the 4% withdrawal rule still effective for determining how much you can spend to attain perpetual retirement?
  3. Jeff Leek compiled a great list of awesome things that people did in statistics in 2014.  Here is his list for 2013.  (Hat Tip: Cici Chen and R-Bloggers)
  4. A video demonstration of the triple point of tert-butyl alcohol.