Investment and financial management, annual deposit of 10000, annual yield of 5%, interest deposit for 20 years. According to the basic calculation formula: principal and interest = principal *( 1+ interest rate) years, and then calculate the sum year by year. After 20 years, the total principal and interest is 34,765,438+092.52 yuan, of which the principal is 200,000 yuan.
This is the power of compound interest.
There is such a story about compound interest. A king who loves playing chess, he likes playing chess very much, and his chess skills are super high, and he has never met an opponent.
In order to show his superb chess skills, he sent a letter to the whole country, saying that as long as anyone wins the king at chess, the king will grant him a request. One day, a young man came to play chess with the king.
After a tense confrontation, the man finally won the king. So the king fulfilled his promise and asked him to make a request. He said, "Your Majesty, please give me one grain of wheat in the 1 grid of this chessboard, two grains in the second grid and four grains in the third grid. Each cell is twice as big as the previous one. Would you please give me all the grains filled by all 64 Greeks on the chessboard? "
The king thought this requirement was too easy to meet, so he ordered his ministers to start counting grain. When people started counting with bags of wheat, the king found that even bringing wheat from all over the country could not meet the requirements of young people. Can you guess how many wheat the last young man asked for? The total number is:1+2+4+8+...+263 = 264-1=1844674073709551615, which is about/kloc-0.
It's really amazing, which shows the great power of compound interest.
If we only apply the compound interest model to wealth investment, we will underestimate the role of compound interest.
What we need to do is to apply the compound interest model to our lives. If we can make full use of compound interest in real life, we will certainly make great achievements.
Mr. Long Xiong, the founder of Planet, contacted the lecture in 2008 after failing to find a job many times, and joined the international speech organization Toastmasters Club. Since then, he has been teaching hard, practicing basic skills day after day and year after year. 20 18, the persistent planet was established. In just four years, now his students come from China, China, China, Macau, the United States, Japan, Germany, Britain, United Arab Emirates, Dubai and so on, all over the world. Held 54 online training camps and 138 offline speeches, all because of the compound interest effect brought by long-term efforts.
Life is limited, so how to turn limited time and limited life into infinite productivity? You need to deliberately acquire the thinking of compound interest.
Interpersonal relationship is a very important resource in modern society. If you know many friends, friends can introduce new friends, because the more people you know, the wider your network resources, and the more people who want to know you, so your network will grow bigger and bigger.
However, if you only know people and can't provide value to these friends, you can't establish more lasting contact with these friends over time, and your personal relationship will become an invalid resource.
In order to make these personal relationships more lasting and even more sticky, we need to constantly improve our own value and help others.
The more help you give others, the more friends you will have. Such friends are quality friends.
Therefore, let yourself become valuable first, and then let more people know your value through the network and self-media, so as to achieve a breakthrough from 1 to 20 and then to infinity.
How can we maximize this compound interest? The answer is to improve your ability. If you use the compound interest model to manage your finances, then you will invest 6.5438+0 million yuan, and the annualized rate of return is only a few tens of percent. If you want to get a higher annualized rate of return, you must invest in your own brain and your own growth.
Gu Ailing, an eye-catching athlete from China in this Winter Olympics, was put into personal growth by her mother when she was a child. According to media statistics, it reached $654.38 +0.5 million. After a long period of precipitation, this $654.38 +0.5 million has now brought him more than thousands and tens of thousands of income.
It has been reported by the media that before 202 1, Gu Ailing's endorsement fee was about 1 ten thousand dollars. After 202 1 February, as she won the World Extreme Games and the World Championships in succession, after winning the gold medal in the Beijing Winter Olympics, the endorsement fee went up all the way, reaching $6.5438 +0.5 million and $6.5438 +0.8 million.
It is reported that the cost of Gu Ailing's new endorsement has reached US$ 2.5 million (nearly RMB 6,543.8+0.6 million) after tax. This is just an endorsement fee, which brings her value. This is really beyond our imagination.
Therefore, when you are young, you should invest money in personal study, self-growth and ability improvement, so that you can be valuable first and make full use of the leverage principle and compound interest model. When you have the ability to make money, wealth will naturally flow in.
This is the lever to think about life with compound interest thinking and then incite life.