http://strongest-tool.livejournal.com/ ([identity profile] strongest-tool.livejournal.com) wrote in [community profile] capeandcowl2010-03-30 11:32 pm

[video]

[The video opens on Rua in his room, a small mountain of what appears to be candy, action figures and cards behind him. He rummages through it for a second and pulls out a candy bar, which he opens and starts eating.]

Shpprnding arra dish mrghy ish- [pause. He gulps down the bite he took.] Spending this prize money is harder than I thought it'd be. I think I still have like 900 dollars left!

[identity profile] bluffing-ruffle.livejournal.com 2010-03-31 04:17 am (UTC)(link)
[No need. This is for your benefit.]

Let us say that each candy bar is one dollar. If you spend one hundred now, you may have one hundred now.

Now let us say that if you do not touch this money for two months, it becomes one hundred and ten. You would then be able to have more than before, would you not?

[identity profile] bluffing-ruffle.livejournal.com 2010-03-31 04:40 am (UTC)(link)
[Sloooooowly starts reeling him in. Heeeeeere, little fishy Rua...]

Ah. That, you see, is one of the benefits of putting money into a bank.

Because a bank 'uses' the money people are not touching--which is far too complicated to explain right now, but rest assured that you will always get it back when you wish--they will give you a thank-you gift of extra money in return. Therefore, the longer you leave it alone, the more extra you will have... and the more extra that you have, the much more extra you will get.

Here: assume they give you one extra dollar for every ten you let them borrow for two months, generally speaking.

100+10=110.
110+11=121.
121+12=132.
132+13=145.
145+14=159.
159+16 (for the sake of even numbers)=175.

If you allow them to hold onto your 100 for an entire year, you would gain nearly that much again just for being patient. Or--just short of twice as much candy in one go as if you spent it all right now.

And of course... if you have extra candy, it would not be necessary for you to spend another 100 dollars again nearly so soon. So while you are enjoying what is essentially free candy by that point, you may add the next 100 dollars you now do not need to spend to the bank... and get extra on that. It is a repeating cycle, you see.

Patience pays off far better in the long run than greed, Rua.