MGEA02H3 Chapter Notes - Chapter 4: The Wealthy Barber, Compound Interest, Dollar Cost Averaging
30 Oct 2017
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MGEA02H3 Full Course Notes
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Read ch#1-4 of (cid:862)the wealthy ba(cid:396)be(cid:396)(cid:863) and answe(cid:396) the (cid:395)uestions below: Roy is saying that if (cid:455)ou sa(cid:448)e (cid:1005)(cid:1004)% of (cid:455)our i(cid:374)(cid:272)o(cid:373)e, (cid:271)(cid:455) the ti(cid:373)e (cid:455)ou get to retire(cid:373)e(cid:374)t (cid:455)ou"ll ha(cid:448)e substantially a large sum of money saved up due to interest and compound interest. Explain why it is important to begin a savings program earlier in o(cid:374)e"s life. Compound interest is interest on principal and interest. It is important to begin a savings program earlier because you need to make sure you save up enough that will last your retirement as people are retiring for more years than they have worked. Manhattan for beads that were worth a low amount of . If the indians had invested that money at 8% interest their tribe would be worth well over trillions of dollars: explain how inflation is negated by the ten percent solution.
