- #1

Pengwuino

Gold Member

- 4,989

- 16

Well, the next week I gave them a quiz where I asked them if you have $10,000 in a bank account sitting aroudn for 10 years at 3% annual interest, how much do you expect to have?

I think 2 out of 30 people got it right, 4 were close (and by close, im including the people who literally just multiplied $10,000 by 0.03 to get 300 and added up 10 years worth... that is to say, they didnt understand compound interest).

What do you do with students like these? I want to figure out the best way to tell them that all your financial matters for the rest of your life follow this concept. I think I might tell them not to look like those morons on dateline who buy a new car and add a new section to their house and what have you "and before you know it, after a few years, I had a quarter million dollars in debt".

Then again maybe thanks to Excel and loan calculators and what have you, the people of this world's abysmal mathematical skills won't play too big a role in teh fall of society.