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The Power of Compounding
A simple exercise
Which one would you pick
or
Choice 1: You get Rs.2 lakhs net payment.
Choice 2: You get paid per paise plan
i.e., Day 1  0.01
Day 2  0.02
Day 3  0.04, ...
Day 30  X
Total pay  Sum of all 30 days
束For 30 days of work損
Would you choose --
Total Pay of Compounding
1 0.01
2 0.02
3 0.04
4 0.08
5 0.16
6 0.32
7 0.64
8 1.28
9 2.56
10 ~ 5
11 10
12 20
13 40
14 80
15 160
Day
Total pay
would be
more than
1 crore rupee
Pay
16 320
17 640
18 1280
19 2560
20 ~ 5000
21 10,000
22 20,000
23 40,000
24 80,000
25 1,60,000
26 3,20,000
27 6,40,000
28 12,80,000
29 25,60,000
30 51,20,000
Day Pay
QNET is Compounding!
silverprad@gmail.com
Email
http://www.qnetindia.in/
Website

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Power of Compounding

  • 1. The Power of Compounding A simple exercise
  • 2. Which one would you pick or Choice 1: You get Rs.2 lakhs net payment. Choice 2: You get paid per paise plan i.e., Day 1 0.01 Day 2 0.02 Day 3 0.04, ... Day 30 X Total pay Sum of all 30 days 束For 30 days of work損 Would you choose --
  • 3. Total Pay of Compounding 1 0.01 2 0.02 3 0.04 4 0.08 5 0.16 6 0.32 7 0.64 8 1.28 9 2.56 10 ~ 5 11 10 12 20 13 40 14 80 15 160 Day Total pay would be more than 1 crore rupee Pay 16 320 17 640 18 1280 19 2560 20 ~ 5000 21 10,000 22 20,000 23 40,000 24 80,000 25 1,60,000 26 3,20,000 27 6,40,000 28 12,80,000 29 25,60,000 30 51,20,000 Day Pay