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If you make 2% more money every year than you did the year before, then how does that lead to 40% less earnings over 40 years?
by jononomo 5y ago
If you make 2% more money every year than you did the year before, then how does that lead to 40% less earnings over 40 years?
- KarlKemp 5y ago0.98 ^ 40 = 0.445. But that’s income in the last year, not fraction of the total. You’d have to add up 1 + 0.98 + 0.98^2… to get that, but I’m too stupid to figure out a closed formula or anything else I can solve with the Google calculator. It does get pretty close to 0.6, I believe, making this the least insane part of the post.