One chicken became two the next day, four the third day, and 536.87 million in 30 days.

The banking industry is like this:

If we have a deposit of 10,000 yuan, we can get a fixed rate of return of 5% every year. Do you think it is unusual?

If the interest is rolled for 30 years, the balance of principal and interest is 4.32 times, but if calculated according to simple interest, it is 1 1.07% annual income.

If the profit is rolled over to 100, it is considered as a welfare for future generations, then the balance of principal and interest becomes 13 15000 yuan. Don't you feel anything? If calculated by simple interest, the simple interest rate is 130.5%.

If the profit rolls for 200 years, the balance of principal and interest is as high as 172925800 yuan. In this way, we can achieve a small goal of 100 million. In this case, the order interest rate is 86.46%.

1626, the governor of the Netherlands, the United States and New Holland bought Manhattan Island with $24 jewels. Up to now, 393 years have passed, and if calculated according to the yield of 6.5%, the accumulated principal and interest balance is as high as 1.344 trillion US dollars.

However, if the rate of return is 5%, the current principal and interest income is only 5 1 100 million US dollars. 1964, the value of all properties in Manhattan exceeded125 billion dollars.

Another story widely circulated on the Internet is:

1950, a woman bought $5,000 in Coca-Cola stock and hid it and forgot it. Fifty years later, when she was cleaning the room, she found those stocks. According to the accounting firm's calculation, the value of these stocks has risen by an astonishing $50 million.

The risk of compound interest calculation: in fact, if banks spread this kind of thing, they are basically doomed to bankruptcy. Hundreds of years later, all banks can turn the profits of assets into trillions.

In 20 16, Swiss banks jointly published the account list of 2,600 people, involving an amount of 44 million Swiss francs, equivalent to about 280 million yuan. The purpose of Swiss bank is to find the owner of this huge forgotten deposit of 280 million yuan.

In Swiss banks, if the bank fails to contact the account holder for more than 10 years, the account will be classified as dormant. In 20 15, Swiss legislation stipulated that accounts that failed to contact account holders for more than 60 years and were still inactive and dormant would be classified as forgotten deposits, and their owners or heirs would be publicly searched.

If the relevant person or heir fails to contact the bank within 5 years, the bank deposit will be transferred to the Swiss government. Finally, even if you can prove it effectively, it is impossible to enjoy the deposit treatment.

Some people think it is not easy to earn 200,000 yuan from 10,000 yuan a year. In fact, we have 250 working days a year. If the income growth of 1.2% can be realized every working day, the account balance can be transferred to197,000 yuan after one year.

If it is stable for two years, the final income will be 3.89 million yuan.

If the stability lasts for three years, the final income will be 76.8 million yuan.

If the stability lasts for four years, the final income can reach 65.438+0.5 billion yuan.

In the fifth year, the comprehensive income became 30 billion.

In the sixth year, the comprehensive income will become 600 billion.

If we continue, all the cash will be found soon.

The power of compound interest is really great, but you must be able to really make a stable profit. The reality is that you have to struggle with factors such as life, law and reality.

Related questions and answers: What is compound interest? What is the formula for calculating compound interest? There are two ways to calculate the concept of compound interest, one is simple interest and the other is compound interest. Compound interest means that after the end of each interest period, the remaining interest will be added to the principal to calculate the interest of the next period. In this way, in each interest-bearing period, the interest of the previous interest-bearing period will become the interest-bearing principal, that is, interest will accrue at interest, which is also commonly known as "rolling interest". The formula of compound interest is f = p * (1+I) nf = a ((1+I) n-1)/IP = f/(1+I) NP = a ((1) A: Annuity, or equivalent. I: Expected annualized interest rate or discount rate N: Number of interest-bearing cycles The characteristic of compound interest calculation is that the sum of principal and interest at the end of the previous period is taken as the principal of the next period, and the principal amount of each period is different when calculating. The formula for calculating compound interest is: f = p (1+I) n There are intermittent compound interest and continuous compound interest in compound interest calculation. The method of calculating compound interest on schedule (such as year, half year, quarter, month or day) is intermittent compound interest; The calculation method of instant compound interest is continuous compound interest. The calculation method of discontinuous compound interest is generally used in practice. For example, if the principal is 50,000, the expected annualized interest rate or return on investment is 3%, and the investment period is 30 years, then the interest income obtained after 30 years is calculated according to the compound interest formula: how amazing is the compound interest of 50,000× (1+3%) 30? Suppose the annual average expected annualized expected rate of return is 10%. If we invest 10000 yuan now, what will it be 30 years later? Fried 160000 yuan. This is the power of compound interest and this is the power of time. 30 years 16 times or more. And what about pure profit? If it is simple profit, suppose 6% per year, less than twice in 30 years. The gap has reached an order of magnitude. Generally speaking, bank deposits are very simple, whether they are current or fixed. Therefore, putting money in the bank is not investment at all, but stupidity. Although there is so-called security, this kind of security can't bring you real security, because in an era of low expected annualized interest rate and high inflation, this practice of putting money in the bank is simply irresponsible for your own funds. The question now is, is there such an investment product with an average annual expected annualized return of 10%? Yes, that's the index fund. This kind of fund tracks an index with little error. For example, some index funds that track the stock market are passive investments. Basically, the market rose, the index rose, and the fund rose; The market fell, the index fell and the fund fell. Therefore, this kind of fund does not need to invest too much energy and is not easy to be manipulated. Suitable for long-term fixed investment. In addition, many index funds have back-end fees, which will be exempted from subscription fees and redemption fees after long-term holding. These small money will become big money in the future, and we need to pay more attention. Other types of investment methods are either that the expected annualized expected rate of return is too low, such as bonds; Or it is too risky, such as stocks. Through the above analysis, it is feasible to manage money through index funds. The most important point is security. Because index funds simulate the trend of the market, as long as they can arbitrage in time when the market rises and buy in time when it falls, then they can get the appropriate average expected annualized expected return. Also, the longer the index fund is held, the less likely it is to lose money. After all, there are always ups and downs in the market, and there will always be bulls and bears. Therefore, what we have to do is arbitrage and buy in time.