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Posted by / 14-Dec-2017 16:54

Simple interest has a simple formula: Every period you earn P * r (principal * interest rate).

It is an opportunity for us to reflect on the language and ideas that represented each year.

Most interest explanations stop there: here’s the formula, now get on your merry way. But you don’t need to follow that pace for a full year!

If you grew for 6 months, you should be entitled to . Each year that blue contributes (in green) to our total amount.

I imagine the blue principal “shoveling” green money upwards every year.

However, this new, green money is stagnant — it can’t grow! Only the original 0 can do “work” to generate money.

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