3 ms·
And even fewer realize that a 2.1% growth rate is itself exponentially faster than a 2% growth rate. If something grows by 2% per day, vs 2.1% per day, after a
by davidiach 7y ago
And even fewer realize that a 2.1% growth rate is itself exponentially faster than a 2% growth rate.
If something grows by 2% per day, vs 2.1% per day, after a year the second one is >20x bigger.
- algorias 7y agoWhat you say is true in principle, but your numbers are wrong. I got a rather less dramatic 50% difference after a year: >>> 1.02**365 1377.4082919660768 >>> 1.021**365 1969.6808462403098 >>>
- davidiach 7y agoThanks for the correction, I didn't actually do the math for that, just remembered something I've read a while back, but the numbers where different 20% vs 21%. Apparently I don't understand exponential growth either cause I assumed a 5% difference scales linearly (as in the difference between 20% vs 21% growth rates for a given period should be the same as between 2% and 2.1%). Silly me.
- hef19898 7y agoBut a good exmple showing why numbers are so important. A 50% difference is an order of magnitude away from a factor 20. Thing is, once out there the wrong factor 20 is impossible to correct.