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6 Awesome Math Tricks That Will Make Your Life So Much Easier (Very useful for investors)
Business Insider ^ | 12/06/2011 | Eric Platt

Posted on 12/06/2011 12:08:26 PM PST by SeekAndFind

You're on the trading floor, trying to price out if a 15-year bond issued by General Electric will generate the returns needed to placate your investors.

Bad news, your calculator is dead and the trader from Cantor Fitzgerald is readying to signal his buy. What to do?

Well, if all you need to do is double the investment in five-years, you're in luck.

That's probably not the case, and GE probably isn't issuing 15-year debt. But we compiled a list of six math tricks that might just come in handy.

If you have a math trick you'd like us to add, leave it in the comments or tweet it to @EricGPlatt.

1) The Rule of 72

Need an easy way to determine how long it will take to double your returns? Simply divide the number 72 by your projected growth rate.

So, if your returns are increasing by 10% per year, it will take 7.2 years for them to double in size.

2) The Rule of 115

If you're more inclined to triple your returns, because you're not as risk averse (or perhaps your time horizon is just a tad bit farther out), simply take the number 115 and divide it by your growth rate. This will give you the amount of time it will take to triple your returns.

So, if your returns are increasing by 10% per year, it will take 11.5 years for them to triple in size.

3) The Rule of 70

The rule of 70 dictates how long it will take for inflation to halve the value of a dollar. Simply divide 70 by your expected rate of inflation.

For example, if you expect 3% inflation, then divide 70 by 3.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Education; Reference; Society
KEYWORDS: bondcollapse; default; dollarcollapse; globalism; investment; math; mathtricks; tricks
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To: Lonesome in Massachussets
Simpler:
 1  1         1 
 2  11        121
 3  111       12321
 4  1111      1234321
 5  11111     123454321
 6  111111    12345654321
 7  1111111   1234567654321
 8  11111111  123456787654321
 9  111111111 12345678987654321
The simple rule: How many times to hit the 1 key before hitting the x2 key.

Or on most calculators: How many times to hit the 1 key before hitting the times key then the equals key.

When calculators first came out this was a quality test. Still is.

21 posted on 12/06/2011 2:16:19 PM PST by bvw
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To: SeekAndFind

ping for later


22 posted on 12/06/2011 2:18:45 PM PST by Logic n' Reason (N/A)
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To: Lonesome in Massachussets
Not that it matters much, but here:
 1  1         1 
 2  11        121
 3  111       12321
 4  1111      1234321
 5  11111     123454321
 6  111111    12345654321
 7  1111111   1234567654321
 8  11111111  123456787654321
 9  111111111 12345678987654321


23 posted on 12/06/2011 2:22:23 PM PST by bvw
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To: SeekAndFind
Law of Decreasing Marginal Utility for Money!

When the perceived joy in gaining money is far exceeded by the perceived sorrow in losing it!

24 posted on 12/06/2011 2:29:18 PM PST by Logic n' Reason (N/A)
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To: muir_redwoods

Now that is handy.


25 posted on 12/06/2011 2:57:17 PM PST by gitmo (Hatred of those who think differently is the left's unifying principle.-Ralph Peters NY Post)
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To: gitmo

It’s handy but darned hard to explain in print


26 posted on 12/06/2011 5:56:46 PM PST by muir_redwoods (No wonder this administration favors abortion; everything they have done is an abortion)
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To: muir_redwoods

Keeping track of leap years will be the hardest part.


27 posted on 12/06/2011 6:16:44 PM PST by gitmo (Hatred of those who think differently is the left's unifying principle.-Ralph Peters NY Post)
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To: muir_redwoods

The 1-2-3 hint took me a couple minutes to decipher. But the rest came easily.


28 posted on 12/06/2011 6:23:47 PM PST by gitmo (Hatred of those who think differently is the left's unifying principle.-Ralph Peters NY Post)
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To: SeekAndFind

Ping


29 posted on 12/06/2011 7:34:49 PM PST by STJPII
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To: Lonesome in Massachussets

How offen? Your math skills are great, but your typing skills are weak! ; )


30 posted on 12/06/2011 7:45:37 PM PST by jdsteel (Give me freedom, not more government.)
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To: Lonesome in Massachussets

How offen? Your math skills are great, but your typing skills are weak! ; )


31 posted on 12/06/2011 7:46:00 PM PST by jdsteel (Give me freedom, not more government.)
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To: SeekAndFind

save


32 posted on 12/06/2011 7:49:44 PM PST by Texas Songwriter (Ia)
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To: SeekAndFind

Oh, I know, I know! When the yield curve crushes the bond market the investors will be mad no matter what the coupon is!!! ; )


33 posted on 12/06/2011 7:50:21 PM PST by jdsteel (Give me freedom, not more government.)
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To: Trillian

more tricks for the kids (Homeschooling is awesome)


34 posted on 12/06/2011 10:12:10 PM PST by Conservative4Life (Those who don't learn from the past are condemned to repeat it. Elections have consequences.)
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To: jdsteel
How offen? Your math skills are great, but your typing skills are weak! ; )

You can say that again ;) Actually, I was spelling phonetically as I typed. I noticed it, at least after I typed it.

35 posted on 12/07/2011 3:40:53 AM PST by Lonesome in Massachussets (Ceterum autem censeo, Obama delenda est.)
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