What is interesting about compounding interests is that you get not only on you initial deposit, called principal, but also on the interest you get every year.
Usually, it compounds continuously but we would assume, that it is compounding annually.
So, if you take the actual interest rates on regulated deposits in France, that’s 1,25% per year. Let’s assume that you have 100€, so you will get 100+ 100(0,0125), for two years it’s 100+ 100 (0,0125) 2;, or for n years : 100 + 100 (0,0125) n. It’s not easy to calculate.
But how solve this question ? How long does it take to get a certain amount of money, given your principal deposit and the interest rate ? Woooh. This is where the log (logarithm) function is useful. So let’s put this following equation ….
100(0.0125) x; = 200
How to calculate “x” ?
First we need to simplify :
1(0.0125) x = 2 or
x = log 0,0125 2
Let’s enjoy here the original video …
Le projet de règlement sur les données personnelles sera examiné aujourd’hui en Commission « Libertés civiles, justice et affaires intérieures ». Après examen des 4000 amendements déposés sur ce dispositif encadrant la manipulation de ces informations sensibles dans toute l’Europe, un texte sera voté en vue d’un compromis avec l’ensemble des États membres de l’Union. Pour l’eurodéputée Françoise Castex, l’enjeu est maintenant de restaurer la confiance dans l’Internet.
Voici le lien de l’information, pointant vers un site tout à fait “reliable”. (en français).
Il est tard 2:58 AM et je n’ai pas le temps de commenter cette info. Compte tenu de l’intérêt que je porte au travail du PE (Parlement européen), j’ai pensé qu’il était important que je partage cette information. Par la même occasion, il faut signaler que ma députée européenne socialiste (PS), vice Présidente du groupe SD, travaille à la commission LIBE. Vous aurez probablement des nouvelles sur son site internet.
There you have the link, from a reliable french website (in French language). It is late, 2:58 AM and I don’t have time to speak about this information. Given my commitment to the work of the EP, I thought it would be important for me to share this. By the way my socialist MEP, Sylvie Guillaume, vice President of the SD Group in the EP, is working with the LIBE Comitee. You would probably get additional informations from her website.
Sites utilisés :
- As you already may know I love the work of Charles Ferguson and I watched around 10 times his documentary “inside job“. He did a wonderful job and explained very well the dark side of finance through plenty of relevent interview : Gillian Tett, Dominique Strauss Khan, Charles Morris, Nouriel Roubini, the dean of columbia business school, Christine Lagarde and so on..
- I learnt recently that he also wrote a book in 2010-2011 and started reading it even though the book itself is not easy to get in France (and of course no translation available). I just had time to read the two first chapters but what I can already say is that it is far more interesting than the movie, far more explanations, analysis and facts.
Let’s just quote a sentence that shocked me among a few things:
“The rating agencies started consulting for the banks, receiving huge fees for advising how to construct a security such that it would receive a high rating.“
- It is common to hear that judgments and ratings from rating agencies were flawed by the very fact that they were paid by the issuers of securities, but this sentence is really more than that : it is how to pay in order to cheat in a smart way so you can get a “AAA” mark for a piece of crap such abacus for instance !