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Roniqua
Contributor
I have a small amount of cash that i use to trade warrants. I want to know if there is some formula to work out what i will have in 1,2,3 years if i trade with 75% of the total and with a 10% profit each month. I dont really feel like working it out month for month. Any High grade Maths people out there. Thanks.
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Not applicable
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Valued Contributor
so you want me to do the work you are too lazy to do .. sure, how much will you pay me ??
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Not applicable
A quick calculation, roughly 4.6 times your capital. That is not accounting for any losses and you make 10% every month
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Roniqua
Contributor
not much trading going on at the moment. just something to do while waiting. i will do it myself then. prob be wrong and think i will be makeing a mill a year. lol.
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Super Contributor
Use Rule of 72. Divide 72 by the % growth you want to get the time it takes to double your cash. For example if you achieve 15% growth each year, you will double your cash in 4.8 years. i am sure you can apply this to your situation.
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Nett profit amount at end of m months = (X*0.75)*1.1^m
where
X = initial invesment amount
m = number of months
(^ means to the power of, * means multiply)
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Roniqua
Contributor
thats very cool. where did you get the 1.1 from.
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Not applicable
1.1 the first 1 resembles initial amount, the .1 resembles the 10% growth,, so for 20% growth u use 1.2
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Not applicable
simple start small then end small
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