Thank you. Doing 100 days of financial literacy and got here and cldnt understand their methodology for finding answer but you definitely did. Appreciate you.
sory let me ask you a question. You said A=p(1+R/100)^n and R=16/100 so, where is over 100? Secondly could we use the formula p(1+r/n)nt to calculate a compound interest ? And what is the difference of those formulas?
Tambuwal The direction of value investing is actually aiming for "compounding interest". Compounding interest is actually talking about compounding dividend. A growth stock which consistently pay dividends, consists of “Intrinsic Value Compounding” and “Dividend Compounding”. Rather than saying “Intrinsic Value Compounding” is being invented, i would say that “Intrinsic Value Compounding” is rather a discovery of a buried compounding inherited in a consistently growing stock. Nobody knows there is so called “intrinsic value compouding” except Buffett, Munger and Li Lu. I am very sure about this argument. If you want to have a breakthrough in the new value investing, i suggest you start to do research on “Intrinsic Value Compounding". Logic and reasoning are utmost important. Hope you found the way to reveal the right formula of “Intrinsic Value Compounding”. The impact power magnitude of “Intrinsic Value Compouding” is very much stronger than the widely spoken “Compounding Interest” aka “Dividend Compounding”. Cheers
