How a Dollar a Day Really CAN Turn into $30,000 in a Year! (With the Magic of Compound Growth)

Featuring an amazing factoid from @carolinebaniewicz !

Can a dollar a day turn into $30,000? It can, but it requires two things: water and sunlight.

Check out the main channel @polymathematic !

Wait, no, that's a different video. It requires a positive growth rate and time. These two things together produce a phenomenon known as compound growth or compound interest. Their power comes from exponentiality. As long as your base is greater than one (which is equivalent to your exponential rate being above 1), your investment WILL grow. And it will grow more the longer time goes on.

Now, for something to grow from a meager dollar a day to $30,000 after only a year requires a 1.073% daily growth rate. Which doesn't sound like a lot until you realize that's the equivalent of over 500% growth per year. This is one of the reasons those motivational sayings about getting "just" 1% better per day, while they sound reasonable, are actually pretty unrealistic.

#exponentialgrowth #compoundinterest #compoundgrowth

Follow Tim Ricchuiti:

Watch more Math Videos:

[joshuaphillips]

She just said save. Not invest so it’s 365 dollars unless it’s a leap year

[jaredh]

"If you find someone who will give you 300 dollars for every dollar you give them, it could make you exceptionally rich"

[tjvroom]

A paltry 1.7% per day. Dog is tweaking if he thinks any safe investment has a yield at 620% per year. Like damn.

[jamesferguson]

Nobody in their right mind pays 1.7% a day.

[ruzreuben]

1.0173 percent a day ROI is actually a ton

[pigstick]

These people are insane, if it was that easy we’d all be on 30k a year extra for $365

[Tonyrg]

Translation: if you can get someone to give you free money youll have lots of money.

[kevinhoard]

He got me in the first half. I was like paltry 1.73% per day!??

[bogella]

In the original video she also said you can increase your rent by changing 4 tiny green houses to a red hotel.

[Spektr_]

Completely true, now you just gotta find a bank stupid enough to give you 1.7% interest per day.

[flyingark]

If you saved a dollar a day for a year, you'd have exactly 365 dollars.

[Sigmalennycareers]

Without context some person will end up with $365 dollars

[nert-]

1.7% per day is nuts. Intrest rates right now are 8% per YEAR

[ebinlazar]

I applaud her confidence.. Well done, you made your math teacher really proud in 5 seconds.

[shawnbruinders]

Was almost outraged when he said 1.7 like it was nothing and then said it's insane at the end 😂

[MikeHoncho]

There’s a lot of gifts in your scenario, but if no one’s willing to give you 500% return, then it’s not possible to have that much money at the end of the year.

[danielmattos]

She’s doing a parody. In the original clip it’s these two girls actually mocking financial advisors on social media saying outlandish shit that everybody can do to become millionaires by their mid twenties.

[TFUMEAN]

My mans went to quantum realm to make her math make sense

[Steve-ogcr]

My blood pressure went up at the beginning.... Brought me back down at the end lol

[josephiroth]

One day to expiration 20% out of the money calls before a company's earnings here I come.