[quote]Lorisco wrote:
Vroom, compound interest doesn’t apply as it is a constant.[/quote]
Step away from the crackpipe…
[quote]vroom wrote:
Lorisco wrote:
Vroom, compound interest doesn’t apply as it is a constant.
Step away from the crackpipe…
[/quote]
“Constant” meaning that the principle that it is based on does not decrease. Because if it did so would the interest rate, compounded or not.
So when people die they decrease the principle.
Just thought I would explain that further as you still seem to be in la la land over this.
[quote]Lorisco wrote:
“Constant” meaning that the principle that it is based on does not decrease. Because if it did so would the interest rate, compounded or not.
So when people die they decrease the principle.
Just thought I would explain that further as you still seem to be in la la land over this.
[/quote]
Lorisco, I think you have a serious problem grasping the concept of compound interest.
Regardless of the age of death, the population will grow as long as on average people have more than one child (or two per couple) during the time that they do live.
Let’s say generation X has 10 people in it.
Simplifying matters a bit, they give birth to generation Y. At 1.2 children per person, they give birth to 12 people.
Rounding for simplification, generation Y then gives birth to 14 people as generation Z assuming 1.2 children per person.
To continue, regardless of when the old people die off, then following generations keep getting a bit larger because the previous generation has more than enough to replace itself. This is where the compound interest concept comes from.
At the same time that this is happening, you do have the fact that generation X, Y and Z can all be alive at the same time.
Again, to simplify things, lets say the third generation dies off as the fourth is born. So, the children of generation Z, 17 of them, are born to replace the original 10 of generation X as they die of old age.
Of course we don’t have such clean generational gaps or replacement times, but this is what is happening. The growth of the human race to billions of people is due to the fact that one generation generally gives birth to more than enough replacement children to replace themselves… resulting in a compounding growth in the size of the most recent generation.
If you can’t follow this example along, that’s fine, but I suspect you are just trying to keep the conversation going for no reason.
[quote]vroom wrote:
Lorisco wrote:
“Constant” meaning that the principle that it is based on does not decrease. Because if it did so would the interest rate, compounded or not.
So when people die they decrease the principle.
Just thought I would explain that further as you still seem to be in la la land over this.
Lorisco, I think you have a serious problem grasping the concept of compound interest.
Regardless of the age of death, the population will grow as long as on average people have more than one child (or two per couple) during the time that they do live.
Let’s say generation X has 10 people in it.
Simplifying matters a bit, they give birth to generation Y. At 1.2 children per person, they give birth to 12 people.
Rounding for simplification, generation Y then gives birth to 14 people as generation Z assuming 1.2 children per person.
To continue, regardless of when the old people die off, then following generations keep getting a bit larger because the previous generation has more than enough to replace itself. This is where the compound interest concept comes from.
At the same time that this is happening, you do have the fact that generation X, Y and Z can all be alive at the same time.
Again, to simplify things, lets say the third generation dies off as the fourth is born. So, the children of generation Z, 17 of them, are born to replace the original 10 of generation X as they die of old age.
Of course we don’t have such clean generational gaps or replacement times, but this is what is happening. The growth of the human race to billions of people is due to the fact that one generation generally gives birth to more than enough replacement children to replace themselves… resulting in a compounding growth in the size of the most recent generation.
If you can’t follow this example along, that’s fine, but I suspect you are just trying to keep the conversation going for no reason.[/quote]
10 people in generation X? Would that then be 5 women and 5 men?
Since that is the normal scenario, lets assume 5 women and 5 men.
Each couple has 1.2 children. That is 6 children, not 12. Now if you are assuming 20 people in X (10 women and 10 men), then that would be 12 (Y).
But notice how a funny thing happens when you count all the people and not just the women, 12 children does not replace the 20 when they die.
So lets assume that Y has 1.2 children of their own (Z), that would only be 7 children as there would be only 6 couples (6 women and 6 men). Notice again how 7 does not replace 12.
Notice that we started with 20 people and after 2 more generations we only have 19 (12 and 7) at a 1.2 children per couple rate.
So assuming generation X dies after Z is born, you would have a decrease by 1 in the population.
So if we are only concerned about births, the growth occurs when people have more than 2 kids, not 1.2.
However, if we do factor in the deaths, or lack thereof, then we see that after 2 generations we now have 39, which is population growth.
You are too funny vroom!
Lorisco,
Stop pretending to be mentally deficient.
You know damned well all along that I am using PER PERSON numbers just to simplify the math.
10 people, each having 1.2 children, yields 12 (it equates to 5 couples having 2.4 children each).
I suppose the next thing you will have problems with is the decimal fraction?
[quote]vroom wrote:
Lorisco,
Stop pretending to be mentally deficient.
You know damned well all along that I am using PER PERSON numbers just to simplify the math.
10 people, each having 1.2 children, yields 12 (it equates to 5 couples having 2.4 children each).
I suppose the next thing you will have problems with is the decimal fraction?[/quote]
Ok, ok… I’m just messing with you.
Someone has to give you a hard time or you would feel left out!