Good query to indicate the ability of compounding…in fact you should definitely inform them that no funding would double every day for 30 days;) Calculators not allowed!
Reply: Beginning with a penny and doubling it daily compounds to $10.7 million after 30 days
Day 1: You’d have $0.02
Day 2: You’d have $0.04
Day 3: You’d have $0.08
Day 4: You’d have $0.16…
Day 30: You’d have $10,737,418.24.
- How a lot would the penny have grown to on Day 29? How a lot did the worth enhance between Day 29 and Day 30?
- Now apply this idea to your personal financial savings…
- Is it higher to start out saving early (e.g., beginning at age 20 and saving for 30 years) or ready till your life is extra steady (begin saving at age 30 and saving for 20 years). Use the instance of the penny doubling to clarify your reply.
Here is the ready-to-go slides for this Query of the Day that you should utilize in your classroom.
Behind the numbers:
Here is the spreadsheet with the calculations.
Concerning the Creator
After graduating from UCLA with a Grasp’s in Schooling, Mason spent 5 years as a science educator in a South Los Angeles public highschool. He’s dedicated to supporting the holistic progress of all college students and empowering them to reside a lifetime of relational, educational, and monetary success. Now settled within the Bay Space, Mason enjoys facilitating skilled developments and partnering with educators as they put together college students for a shiny monetary future. When Mason isn’t constructing curriculum or planning a coaching, he might be discovered biking, making an attempt new meals, and exploring the outside.