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In the beginning, you might have had 100 gold coins and were paid 12% per year (percent = per cent = per hundred — those Roman numerals still show up! Are you saying 100 and 106 earn the same amount in 6 months?
(The math gurus will call this trajectory a “derivative” or “gradient”.
No need to hit a mosquito with the calculus sledgehammer just yet.) Simple interest should make you squirm. We should use the bond payouts ($50/year) to buy more bonds.
Of course, with simple interest our earnings are based on our original amount, not the “new total”.
Connecting the dots gives us a trendline: we’re following a path of $50/year.
The APY (actual yield) is what you care about, and the way to compare competing offers.
Let’s start on the ground floor: Simple interest pays a fixed amount over time.That straight line perfectly predicts where we’ll end up.The idea of “following a trajectory” may seem strange, but stick with it — it will really help when understanding the nature of e.So, take a stroll down memory lane to remember all of our past Word of the Year selections.Interest rates are confusing, despite their ubiquity.In other cases, our rate may change, like a skydiver: they start off slow, but each second fall faster and faster.Tags: Adult Dating, affair dating, sex dating