On 7 Apr., 04:02, "Jon G." <jon8...@[EMAIL PROTECTED]
> wrote:
> Probably most of you know that the Laws of Growth and Decay are
expressed in
> the solution to the Differential Equation,
>
> dy/dx = 1/x
What is x, what is y here?
>
> I see an injustice in financial institutions for compounding interest on
> loans daily and compounding interest on savings annually, and raking in
a
> fortune for the ignorant public.
The difference between daily/monthly/annual compounding is not what
they
live on, but rather the difference in the effective interest reate.
In fact, in many countries, banks are obliged to advertise their rates
in a uniform manner based on annual compounding.
>
> I thought to add to their profits, there might be alternative equations
to
> sap out the consumer with mathematical rigmarole, such as,
>
> (the money you have left) = 1/(the money you give them)^7
In that case, I simply give them nothing and have an infinite
amount of money left.
>
> Many banks would like this arrangement.
>
> Can you think of other more elusive, sophisticated terms?
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