Stange question about compounding interest

Maverick74 · Sep 25, 2011

Quote from lasner:

Is a 900% return the same as a 30% return for 30 years. It's the same amount right it equals 900%. 30% for 30 years.

Will you get the same return if you make a 900% in 1 year as you would with a 30 year 30% return each year.
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OK, I was using this post. LOL.

lasner · Sep 25, 2011

It shows you how important compounding interest is.

Businessman · Sep 25, 2011

Quote from lasner:

Is a 900% return the same as a 30% return for 30 years. It's the same amount right it equals 900%. 30% for 30 years.

Will you get the same return if you make a 900% in 1 year as you would with a 30 year 30% return each year.
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You have to make about 250% simple return, assuming you are making lots of small trades and not a few big ones, and with compounding those smaller profits which add up to 250% on their own become 900%.

If you can make 900% simple, then with compounding that 900% will grow your account by over 5000 fold.. which is a huge percentage number

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Stange question about compounding interest

Maverick74

lasner

Businessman