When calculating interest in savings and loan matters, there is a compound interest. 5 kyat increase Let's say increase by 10. If you increase by 5 kyats per month, the annual interest rate (5x12) is 60%, and if you increase by 10 per month, the annual interest rate is (10x12) 120%.
This is just the simple rate that would be charged if the regular interest was settled, not compound interest. For example - let's say increase by 10. If it is 1000 kyats, you will have to pay 100 kyats of interest for the first month. If you add up the interest, the total will be (1,100) and you will have to pay (110) kyat in interest in the second month. In the third month, interest (122 kyat) will be charged.
If it is compounded monthly in this way, the original interest rate is 120%, but the total interest will be 213.84%. So the original (1,000) kyats will increase to (3,138.4) kyats in a year.
At this rate, this original (1000) kyat will exceed (300,000) after 5 years. After 10 years, it will reach more than (927) lakhs. The results of the compounding are amazing to calculate.
Although I am saying these things, what I really want to talk about is not about money. Because I saw what Paul Graham said yesterday.
"Viewed as an asset, education has some attractive qualities. It naturally tends to compound. You can carry it with you easily. No one can steal or tax it. And unlike most assets, it makes life more interesting." that.
You have heard about the thief of wisdom and gold. He said that not only people do not believe in theft, but they also increase their wealth. It's true.
For example, a programming language may be difficult enough for a beginner to learn over the years, but for someone who has studied a language before, it can be learned in a matter of months. For those who have studied two or three languages and have other relevant knowledge, it is not even months. You can become knowledgeable in a few days. Knowledge is the result of Compound Interest.
The same goes for other study knowledge.
In the beginning, if you are upset because some subjects are too difficult to study for yourself, It is to be aware that every person who plans to study something for the rest of his life will not have to face this kind of difficulty.
If you just keep doing what you have to do, Because knowledge and skills gradually evolve and increase like Compound Interest, Over time, your ability to learn quickly in the relevant field, The ability to easily understand will improve dramatically.
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