Posts Tagged ‘discounted cash flows’

Part II - Compound Interest and Wealth

Part II – Compound Interest and Wealth

By The Banker | Blog Posts, Personal Finance, Wall Street

Compound Interest Math Formula – The Most Powerful Math in the Universe Please see my earlier post, Part I – Why don’t they teach this math in school? For the sake of blowing the lid off this vast cone of silence, here’s the compound interest formula: Future Value = Present Value * (1+Yield)N This is [&hellip

Part I - The Most Powerful Math in the Universe Goes Untaught

Part I – The Most Powerful Math in the Universe Goes Untaught

By The Banker | Blog Posts, Personal Finance, Wall Street

On Teaching Compound Interest and Discounted Cash Flows   “The most powerful force in the universe is compound interest” – Albert Einstein[1]   “Tomorrow and tomorrow and tomorrow, Creeps in this petty pace from day to day To the last syllable of recorded time”   This Spring I began teaching Personal Finance to a group [&hellip

Ask an Ex-Banker: Annuities!

Ask an Ex-Banker: Annuities!

By The Banker | Blog Posts

Q: I am thinking about buying an annuity.  I want to generate dependable income,  BUT,  how do I make sense out of whether or not an annuity is a good investment in addition to providing a degree of comfort.  The tradeoff seems a big gamble,  i.e. how long I will live.  –Captain Bill H., Friendship, [&hellip