You don’t need to win the lottery to be rich

Obverse of the Series 2006 $20 bill

There are several ways to increase your money but all of them either take time or involve a lot of risk. You can do it the old fashion way and just work forty hours a week and put your money in the bank to let interest have its way with it. You can also invest your money and risk losing it, or gamble and hope for a winning streak. Another way is of course robbing old people, but they have recently learnt to fight back. So what is left? Let me introduce you to the wonder of exponential growth.

Exponential growth means that the growth rate of some value is proportional to the current value. Say you take a piece of paper. The entire paper is one whole section and counts as value:1, then you fold it once and now you have a piece of paper with a line in the middle. The value has increased to 2. If you then fold it again you get 2 lines that divide the paper in 4 equal sections. Every time you fold the paper you increase the amount of sections exponentially. So you get 1, 2, 4, 8, 16, 32 etc.

Here is the magical formula to calculate exponential growth: Xt = X0(1+r)^t. X0 is the amount you start out with, Xt is the amount after a certain time interval (seconds, minutes, days etc.), r is the growth rate and t is the time interval. You need to add the 1 because if you take a growth rate of 50%, the total amount after 1 time interval is 150%. If you don’t add the 1 (which stands for 100%, or the starting amount) you would actually end up DECREASING the starting amount, which is not good if you want to make money.

And now to put all this theory into practice. Let’s say you have a 10 dollar bill and you want to increase that amount. All you need to do is fold it. Every time you fold it you get an exponential increase which is only limited to the amount of times you can fold the bill. So quit your job and start folding money!

And now I would like to share with you a poem that is generally attributed to Edgar Allen Poe.

I’ll tell you a plan for gaining wealth,
Better than banking, trade or leases –
Take a bank-note and fold it up
And then you will find your money in creases!
This wonderful plan, without danger or loss,
Keeps your cash in your hands, where nothing can trouble it;

And every time that you fold it across,
‘Tis as plain as the light of the day that you double it!

 

 

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About Quantum Gag

Just someone trying to understand the world around me and sharing it with others.
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One Response to You don’t need to win the lottery to be rich

  1. Pingback: Rapidity of Exponential Growth « Impressions

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