The Mathematics Value in Investment

Being An Investor
The Mathematics Value


Some might already guess 6% investment return annually is quite high as compare to fixed deposits which gives less than 6% annually and quite happy about it. Some might not know that it would change at time for the return rate when we placed the investment at different period of time.

For example:
Jan 2012, Fixed Deposit 3.15% per year.

it might happen that in June 2012,
a) Fixed Deposit has jumped to 4.00% per year.
b) Fixed Deposit has lowered to 2.95% per year.

It seems that those who place their FD in Jun 2012 would be much profitable compares to Jan 2012 or the reverse impact that those who place their FD in Jun 2012 would be less profitable.

So the question of 6% over the investment is it really that "IMPRESSIVE" for the world of investment?

The answer is : YES for a long term investor.
The answer is : NO for a short term investor.


This is how it works.

For a long term investor....
a) Fixing a Capital or Value for type of investment, let's say USD1000
b) Fixing a return rate of investment, let's say 6% would be USD60 annually.
c) Fixing times (x) for 6%, for defining difficulties in the investment games.
    6% over 12(x) = 0.5% per time which give USD5. per time
    6% over 6(x) = 1.0% per time which give USD10 per time
    6% over 1(x) = 6.0% per time which give USD60 per time

The trick is to capture the rate of 0.5% per month, 1.0% per 2 months, 6.0% per year, for "Exit", which is favorable than the Fixed Deposit annually, in which, in other words, it may conclude that other investment would be much better than Fixed Deposit.


If our shares is able to capture USD5 per month, USD10 per 2 months, USD60 per year profit, which is favorable than the Fixed Deposits annually, than we only capable to talk about the followings:-

Investment Level Games
a) Capture 0.5% per month, yearly 6%
b) Capture 1.0% per month, yearly 12%
c) Capture 6.0% per month, yearly 72%
d) Capture 6.0% per 15 days, yearly 144%
e) Capture 6.0% per day, yearly 132% per month x 12 months = 1584% yearly

and the rest go on
Capture 6.0% per hours, Capture 6.0% per minutes, 6.0% per seconds.

and we may know what type of investment is possible and impossible to accomplish.
Kindly fix the measurement :
a) Total of investment as in Capital
b) Annually Rate of Return in % in which should be better than Fixed Deposit
c) Define level of investment, % per month, % per day, % per minutes, % per seconds

than, comes to the moment of
Monthly Return of investment = Monthly Salary
which is the 1st Level of Sustainability Individually.

Monthly Return of investment = 2 x Monthly Salary
which is 2nd Level of Sustainability for Individually & Partners

Monthly Return of investment = more than 3 x Monthly Salary
which is Sustainability for whole family.

Comments

  1. Mathematics is also a branch of science. It is used to calculate values with different methods. In the past, the calculation of the values ??with different things. In the above calculation method is too difficult, but due to the progress of science we can now calculate too large valleys with in a second.

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