If I invest $1000$ dollars, I make $10$% of that on day one. The next day I take the amount I had plus the profit, and invest it making $10$% of that. How can I calculate the amount it will be after $100$ days ? I know the formula for a 10 percent increase of static $1000$ dollars a day. $1000 * 1.1^{100}$ But that is not the formula I need.
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What do you tink the result should be after two days? What would you get from $$1000 \times 1.1^2$? – Henry Jun 15 '16 at 16:07
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$S_0(1+r)^t$ is* the formula you need, the one for compound interest. For "static" sum (simple interest) the formula is $S_0(1+tr)$, $1000(1+100*0.1)$ for your numbers. – Abstraction Jun 15 '16 at 16:08
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Will try that, Thanks ! – dani-hei Jun 15 '16 at 16:10
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$1000\times\left(\frac{110}{100}\right)^{100}$ – barak manos Jun 15 '16 at 16:21
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1The formula you show is the compound interest formula. It is exactly the formula you need. – Doug M Jun 15 '16 at 16:26
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1An investment that promises 10% yield per day? Run away as fast as you can; with utter certainty it will be some kind of scam, and you will never see the money you invested again. – hmakholm left over Monica Jun 15 '16 at 16:27
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@HenningMakholm: be optimistic: risk 1 cent and get $12,833,055,803,133.- after a year if no scam. – Jun 15 '16 at 16:37