If something goes up 100x in 4 years what does that work out to as an annual percentage rate?

if something goes up 100x in 4 years what does that work out to as an annual percentage rate?

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khanacademy.org/math/algebra2/exponential-and-logarithmic-functions/introduction-to-logarithms/v/logarithms
68.media.tumblr.com/d637c1692c963b8a5787f7ef57c10b56/tumblr_inline_omw2sn9VVQ1rwrefw_500.gif
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2500%

100 = x^4

working with log in base 10:

log(100) = log(x^4)

log(100) = 4log(x)

since log(100) in base 10 is 2:-

2/4 = log(x)

0.5 = log(x)

10^0.5 = x

x is approx = 3.16 = 316% per year

nice

25 percent

then explain this

I have no clue, but my maths is correct. Maybe they are using a different definition of what it means to gain interest. So I don't know.

But I guarantee you if you take a calculator out, and multiply 2.16*2.16*2.16*2.16 you won't end up with 100. Only 3.16*3.16*3.16*3.16 gives you 100

depends on what you mean by 100x

what is your starting and final number ?

thank you for reminding me what logs were, and thank you for the flashback of my teacher
>didnt explain that the calculator had to give you log values
>let all the kids who couldn't figure it out dive their grades straight into the ground
>actually told me not to tell the other students about the log function on the calculator
>$300 per calculator
>only allowed to use calculators with the schools logo engraved on the back
>america fuck yeah

10000 starting
1000000 ending
how fucking retarded are all of you?

clearly the difference between 316 and 216 is the inclusion of the original 100% capital per year

x beside a number like that is a variable notation in common math.

just different ways of saying the same thing, neither is more correct

You got a flaw in your calculation at the very end. x3.16 equals +216%

So OP, your screenshot is correct. 216% will lead to x100 after 4 years. (x3.16 every year)


Everyone else: I am embarrassed for the math skill on a Veeky Forums board. Did you even finish fucking highschool you useless NEETs?
No lambo for you guys

x3 = 300% bitch shut your fucking mouth

nvm i ignored the whole convo and the +

That something is Bancor.

not retarded. must have missed that day in math class.

looks like you got help tho :)

can you explain the math you are doing here
?
i think a lot of ppl might appreciate it.
i would appreciate it :)

>Did you even finish fucking highschool you useless NEETs
been a long time since highschool for some of us ;)

can you explain the math for those of us who might have become preoccupied and forgotten ?

the only way anyone knows anything is by learning after all , and we were all born knowing nothing ;)


would really love to understand this formula quickly tho if you have a firm grasp on it, other wise will have to add it to my long list of mathematical formulas to get to one day after i have addressed the ones more pertinent to my day to day :(

never mind there buddy ;)
you don't have to be so rude and haughty about your math trivia quiz btw ;)
any info can be found and learned in about 5 minutes nowadays.


khanacademy.org/math/algebra2/exponential-and-logarithmic-functions/introduction-to-logarithms/v/logarithms

you're the one asking. lol

...

guess i spent more time, reading the bible and talking to God than nerding out in math books ;)

and look where it got me ! :p


ill be sure to use this math problem when we are calculating how much money you are owing me.

68.media.tumblr.com/d637c1692c963b8a5787f7ef57c10b56/tumblr_inline_omw2sn9VVQ1rwrefw_500.gif

lmfao..

baka

That's highschool level math man...

matches your maturity level then. ;)

if you haven't notices, where not in hs anymore ;)

this is the
big boy world

there are things far more important than high school maths.

>average biz poster

OH I REMEMBER NOW


I WAS FUCKING GIRLS IN HIGHSCHOOL


lmfao.

def worth it.

So you don't know how to factor in that discount on your tendies?

not sure what u mean, but i DID lose my virginity , tit fucked a fattie, mouth fucked 2 blondes at the same and have more money in hundred dollar bills than you could count in your life time with a money counting machine, so i think i win this one ;)

virgin detected

not all of us have to get on line roleplay and make up obsessive stories to feel better for our pathetic , sexually frustrated lives :p

heres the real rub.

i still have the truth.

you still have your virginity, minus your bullshit time u wasted trolling that u could have been using to lose ur virginity b4 u are 2 old 2 touch

dick plus vagina equals sex

>not all of us have to get on line roleplay and make up obsessive stories to feel better for our pathetic , sexually frustrated lives :p

Lmao. This nigga thinks he's the shit because he knows how to use logarithms, but fails to understand how percentage works.

I bet you're american.

shit was cash.

you don't need logs, just take the 1/4 root of both sides so x = 100**(.25) = 3.16

still have no clue what this stuff means btw

anyone wanna explain?

This can be done by solving for Future Value: formula:

FV = Future Value
PV = Present Value
r = compounding rate (NOT in percentage form)
n = number of compounding periods, compounded annually, in this example

FV = (1 + r) ^ n

For example: I have $1 (PV) and I want $100 (FV) in 4 years (n).

Calculate compounding rate (r) required to achieve $100 over 4 years, compounding annually:

$100 = $1 x (1+r)^4

divide 100 by 1

$100 = (1+r)^4

take fractional power of 100 (or "4th root")

$100 ^(1/4) = 1+r
3.16 = 1+r

subtract 3.16 by 1

2.16 = r

percentage form of annual compounding rate: 2.16 * 100 = 216%

>400$ a calc starting
you got cucked

>This can be done by solving for Future Value: formula:

Fuck, meant to say 'by rearranging the Future Value formula', sorry.

>FV = (1 + r) ^ n

formula correction:

FV = PV * (1 + r) ^ n

again, sorry

too tired for this.

don't u have a picture version with apples and trains or something ?

You're essentially trying to find a compounding rate.

The formula FV = PV * (1+r)^n is as important to Finance as is the Accounting equation is to bookkeeping.

Lots of stuff online which covers it, khan academy, as you've mentioned.

rather just see a pictuer or 2 already super busy coding shit i actually care about, fucking with pathfinding algorithms and shit , well if it comes up i will learn it.


obviously its to complicated for anyone here to simply explain its fine.

Compound interest is earning Interest on, both, Principal amount and previously earned Interest.

That is what (1 + r) is trying to model.

In each multiplication of (1 + r) you apply to PV (your beginning principal), the amount multiplied in the subsequent (1 + r) multiplication, increases.

This is done because you want to apply the Compound Interest rate to, not only the original Principal amount each time, but also the Interest that was calculated in the previous (1+r) multiplication.

How many times you multiply PV by (1 + r) is determined by how many times you're going to compound (n).

Sorry if this is further confusing you. If you practice using it, it becomes less convoluted in your mind.

>no pictuers
aint no body got time for that

Not a picture but an example

PV = $10
r = 10%
n = 3 (annually)

How much will I have after 3 years of compounding annually $10 by 10%?

$10 * (1 + 0.1) = $11 (this includes the original principal and interest from the first (1 + r) multiplication)

$11 * (1 + 0.1) --- $12.1 (this includes the original principal, interest, and compound interest from two (1 + r) multiplications)

$12.1 * (1 + 0.1) --- $13.31 (this includes the original principal, interest, compound interest, and another degree of compound interest from three (1 + r) multiplications)

This is can be collapsed down to: $10 * (1 + 0.1)^ 3 = $13.31

This is exactly what FV = PV * (1+ r) ^ n is trying to tell us.