"If I had money of $ 1,000,000 now, how the value of my money inone year ahead?"
But my eyes stopped on a video that is actually quite basic, Icaught an interesting side when examined in depth. Here is his video
By instinct, we would have chosen to receive the money now,rather than waiting for 1 year later. Why? because we can save itto get the flowers or invest it back for a profit.
"Ah, of course I also understand about this. So what's interesting?"
Let us refer to the following calculation,
you choose to deposit in a bank and get the flowers at 4.5% peryear. So your money a year ahead will be:
$ 1,000,000 x (1 +0,045) = $ 1,045,000
If you decide not to take it and continue saving for 2 years, thenits value will be:
$ 1,000,000 x (1 +0045) ² = $ 1,092,025
and so on.What is interesting is,
the $ 1,045,000 is the minimum that you MUST get if you decide to invest for 1 year, and $ 1,092,025 for 2 years.
The calculation above should serve as guidelines for your investment if you ever decide to trade. Why is that?
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