House Prices Still Rising!!

In message , Crowley writes

Now you want 7 years

tarring and feathering is a particular perversion which doesnt flick my switch, so I'll leave it to "T"

Reply to
Richard Faulkner
Loading thread data ...

Bingo! Give this man a cigar.

Japan will be one hit. I also notice that the property bubbles in China are going into reverse. The Japanese and Chinese money is what's been feeding this monster for a decade.

Maybe. There were five flower bubbles in Holland before people quit bidding up the prices of flowers. How many housing bubbles before people learn not to bid up the prices of housing?

FoFP

Reply to
M Holmes

I'm ordering the tar already,and planning on buying surplus swan feathers (should be a lot to spare if bird flu hits)

Reply to
Tumbleweed

"Ronald Raygun" wrote

A good rule of thumb (which isn't far off for most reasonable interest rates), is that :-

Rate(%) x Period = 72

Thus 5% doubles in about 72 / 5 = 14.4 years (really 14.2), and the rate which doubles in 12 years is about 6% (really 5.95%) ...

Reply to
Tim

"For most reasonable interest rates"? It's interesting to note that because rate and period are so closely linked in that formula, you might as well say "for most reasonable periods" instead.

You might even define reasonableness in terms of those rates and periods which work best for the key number 72. Clearly the "most reasonable" interest rate, that for which the rule of thumb gives the best approximation, is 7.847% and the most reasonable period is therefore 9 years and 64 days.

How far away from this maximally reasonable rate do you have to get for the rule to give wonky answers? Well, it depends how you quantify "wonky". Your example results above are roughly 1% off, which certainly isn't bad considering how much further than 1% 5% is from 7.85 and 12 from 9.2.

On the other hand, consider that for both 5% and 12 years, 71 is a better key number than 72.

Reply to
Ronald Raygun

The 'rule of 72' is pretty well established and many times close enough. If someone needs something more precise they can use a calculator or spreadsheet.

John

Reply to
John

Reply to
Richard Faulkner

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.