tag:blogger.com,1999:blog-17549699.post1198549947644567129..comments2023-10-15T02:39:24.369-07:00Comments on Jeff Crook: Hard Core InflationJeff Crookhttp://www.blogger.com/profile/07386092048101815743noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-17549699.post-1522302039547049102010-07-21T06:59:37.653-07:002010-07-21T06:59:37.653-07:00interesting post, but your math is wrong. that wo...interesting post, but your math is wrong. that works out to be a 9.87 percent annual interest rate. in case you don't believe it, here is the math: a 25% annual interest rate; (((((((((75X1.25)1.25)1.25)1.25)1.25)1.25)1.25)1.25)1.25)=$558.79<br />a 9.87% annual interest rate; (((((((((75X1.0987)1.0987)1.0987)1.0987)1.0987)1.0987)1.0987)1.0987)1.0987)=$174.97<br /><br />another way to figure this out is: annual interest rate(i) is equal to the final value (fv) divided by the initial value (pv) to the power of 1 over the number of years (n) and then subtract one from that total.<br /><br />i=((fv/pv)^(1/n))-1<br /><br />http://en.wikipedia.org/wiki/Compound_interest#Mathematics_of_interest_rates<br /><br />cheersghttps://www.blogger.com/profile/08533100966465659846noreply@blogger.com