Wednesday, September 1, 2010

Making a Million p. 19-28

check out the chart on p. 23--Amazing what COMPOUNDING can do!
Even better chart on p. 24--Higher interest rate=more $$$ for you!
Post a summary of what you read, your opinion, and/or questions here and remember to post a comment about a classmate's post also.

59 comments:

  1. put a hundred bucks in the bank now so in 50 years you will be rich

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  2. It talks about how compounding can make you lots of money over the years.

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  3. Compounding is the process of combining interest with time and allowing interest to grow and accumulate on interest.

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  4. I learned that each year interest is earned on the original deposit plus the interest accumulated or compounded. Compounding can make you a lot of money over the years.

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  5. I don't think I would be patient enough to do any of this. (haha) It's pretty insane how you can make so much money by utilizing interest and whatnot starting with a small amount.

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  6. if you start using compounding over years of time the money that you invested will increase so it is worth alot more later

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  7. Put money it the bank and you will make more each year.

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  8. I learned that the longer the time you have money compounding, it has a more powerful effect. If you have a higher return, it also has a better effect. It is crazy how fast the money grows over the years.

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  9. the money that you save can really add up

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  10. Different amounts of money will give you different amounts of payback in the end. There are risky ways and non risky ways. The percent interest makes a huge difference.

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  11. I agree that it is really crazy how fast the money can add up over the years.

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  12. I agree Maggie, it would take a lot of patience. I would be tempted to use the money after a couple of years.

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  13. yeah you just have to put money in the bank early and that money can really add up to make you rich

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  14. The interest rate or rate of return makes a HUGE difference in amount.

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  15. if you have the time to wait and see what happens to the investment that you made then in the end you will get a more worthy prize value

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  16. If you put a certain amount of money into something and it accumulates interest, the amount will increase over time and you can make a lot of money on the interest and return.

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  17. Compounding will make you rich if you keep the money invested.

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  18. I agree that when you put the money in the bank it will add up over the years and you could end up being rich.

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  19. The more money you put in the more you make with interest and it will make more with time

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  20. I learned how compounding your interest or money over time can grow.

    I thought it was interesting how he explain compounding.

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  21. I'm going to have to try this.

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  22. I agree that the more interest you get, the more it will add up.

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  23. I agree with Molly.....when putting your money in the bank it is not only safe but grows with time of compounding

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  24. I agree with everyone this could be some useful information

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  25. yep the longer you wait the more you get out of it

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  26. the interest makes a difference on how much u can make in a year to

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  27. Interest and compounding can help you gain more money

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  28. The more money you put in with a higher interest, they more money you will make over the years

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  29. 100 dollars * 5% interest * 50 years=$1,000,000+

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  30. If you compound your money you can make alot off the intrest

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  31. You want to compound interest so every year you make a little more, instead of making the same interest every year. In return, you will make a lot of money.

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  32. i agree brandon, the problem is that the average interest rate now is 1-2%, so you can't make as much money.

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  33. Dont just put 100 in or it takes forever to get interest if you wait and put 20000 in your interest will grow faster and you will end up with more money.

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  34. Compound Interest works best when you get higher interest on large amounts of your money, then the money will start to grow at an exponential rate

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  35. okay so the compound interest seems like a good idea to me... It's like you put in a certain amount and leave it alone for a while and then bam!! Money to by a big boat or a new house or car. I like that.....

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  36. i agree with blake, you want to keep on adding to the intrest

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  37. One thing I read was that the longer the time, the more powerful the effect of compounding in which I think is true and people will find out. Also I learned how the interest rate or rate of return makes a huge difference in things like the example when the same $100 grew much faster at 10% than 5%.

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  38. I agree with Kayla I think it sounds like its a win win situation.

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  39. If you just put $100 in it would take forever to get up to 1,000 with only 5% interest.... I know that i wouldn't be able to not touch the money i would spend some of it and then i wouldn't be gaining any money from it.

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  40. I agree with travis the more interest on something the more money you make.

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  41. I agree with Travis, if you have large amounts of money with a high interest you will have the best outcome of making money.

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  42. this book is telling you how to prepare for retirement while you are still a teenager. also the higher the rate is the faster your money will grow. put more money and it will also grow faster. 5% is half of 10% so 5 would take about twice as long to get where 10 was

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  43. I agree with travis, the more money and the more interest you have.. you will end up with A LOT more money than having just a little money and small amount of interest.

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  44. i also agree with Travis. your money could potentially be worth billions if you leave it in there long enough (hundreds of years most likely)

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  45. It talked about how using your money wisely can pay off in the long run. If you save your money in a bank with compound interest, it will grow bigger and bigger over the years.

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  46. A definitive summary of in which I've read would be that in order to actually earn a lot of money in the near future you have to first save 5% interest each year for approximately a long period of time--for instance, the worst mistake that many Americans make is that they save up 5% interest each year and then on top of that, they then spend that hard-earned cash for no apparent reason...when they could have been more wealthier in the long-run by not spending that saved money. Also, in my opinion, it is somewhat hard for a lot of people, including myself to save a lot of money and then let it sit in the bank or @ home and let it add up in interest or number...although, it would be a lot more intelligent to let the money in which you now already have--to grow in number and interest so that one day you could retire early and be wealthy--and never have to work another day in your life. Another pointer would be that if everyone in America would not borrow money or in other words use credit cards so often , then we would all be a tad bit richer in our nation's economy! A question in which I have is that why so many Americans are ignorantly ruining our economy by making credit numbers sky-rocket and letting our nation's economy go to ruins....??? And, lastly--a comment in which I have is that I agree with a lot of my classmates --that the longer you wait by saving your money-the more money you will have in the long-run and also, a lot more Americans would be not having to work and have jobs anymore if we all saved our money and invested in it...

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  47. I agree using money is using your brain and not your back it will pay off in the long run if you invest the rite way.

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  48. i agree with travis, if you let it sit, you willl be better in the long run

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  49. The higher the interest rate the more money you earn each year. Its percentage wise, so the more money you put into the account the more money you will get from interest.

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  50. I agree with yall its best to let it be

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  51. Andrew Brown

    What is APY?

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  52. the more money you put in the more money you will make and if you leave it in there to grow the price will go higher and you will make more money

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  53. I agree that the more money you put in the bank and save, the more you will have in the future.

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  54. I learned that the higher the interest rate is, the more money that you will earn from this, which means the better it is. So you want to have a high interest rate.

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  55. The book pretty much sums up that you need to be smart with your money because retirement in just around the corner. So you should have loads of money whenever you retire.

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  56. If you put a high interest rate in a bank and in time that will become a lot of money. If you put a lower interest rate in the bank it will not be as much as the high interest rate

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