1

I appreciate the humor in

Submitted by Jon on October 1, 2007 - 08:27.

I appreciate the humor in this article, but I think Ryan has a good point. The problem with comparing it to an interest bearing account over the course of a year is the year part. You didn't spend $9 a day, you spent $2754 all at once. Also, the return on your investment happens all at once, too, so there shouldn't be any compounding.

To get even more outrageous numbers, why not say this: I buy 360 bottles of wine in bulk for $2754. I have a party with 360 guests and use all of the wine in one night. If all 360 guests brought their own wine (bought individually), it would cost $3240. Therefore my return in ONE DAY was 17.6%. An interest bearing account, compounding daily, equivalent to that would need to advertise a 1.176^365 = 5.78% * 10^25 APR! Yes, that's almost 58 SEPTILLION PERCENT APR, woooo!

Reply

Please keep the comments civil and on-topic. Abusive or inappropriate comments will be removed without warning. By posting here you agree to our terms of use.

The content of this field is kept private and will not be shown publicly.
If you leave a link (include the http:// part), your name will be linked to your homepage.

You may use some HTML for formatting: <strong>bold text</strong>, <em>italics</em>, and <a href="">for links</a>. Empty lines are automatically converted to paragraph breaks.

Or click the link above that says 'enable rich-text' to use the fancy editor.

Captcha
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
12 + 8 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.

Have more to say? Join the discussions at Wise Bread's Finance and Frugality Forums.

Finance Blogs - Blog Top Sites