Bankers Agree to Pay Interest - 10000 Islands Rejoices!

[Old Regional Reserve - CTE]

Extra Extra Read All About It!

In startling news from the Regional Reserve of 10000 Islands, 10000 Island bankers have gotten together and agreed that the 10000 Island Central Bank (where we all keep our funds) should start paying interest on money kept in the bank by all nations here on the forum. The bankers agreed that the economy needs this stimulus, and as such an interest rate of 2% APR is hereby put into place. All ye nations, rejoice!





(Thanks to Grub (Lenlyvit) for agreeing to allow this. We want the economy to grow!)

[Republic of Tikistan]

YAAY!!!!!

[Lamoni]

Congratulations on a wise decision.

[Elite]

well, it wouldn't be XKI without crazy inflation

edit: but at least there's a reason to use the bank now

[Louisistan]

This is a 180° in economic policy. Not that I'm complaining. Ever since I started to use !mobile more often, my income has been in decline.

[Woonsocket]

Well, the idea is to try to keep the economy moving forward.

[HumanSanity]

May 30, 2016 11:40:54 GMT -5 Woonsocket said:

Well, the idea is to try to keep the economy moving forward.

To be completely honest I have my doubts about the efficacy of this idea. I put all 208k of my tacos in the bank yesterday and made 4k of interest in just one day. I'm not sure what my incentive is to buy stocks, farms, investments, etc. if I can make 4k per day by just sitting some money in a bank.

For example consider if I deposited just 10,000 tacos in the bank for a period of 3 months instead of investing the same 10,000 tacos in a farm for my nation on the map.

Using the formula 10000(1+.02)^90 to approximate the amount of tacos earning 2% per day would generate over a span of 3 months, I get 59,431 tacos. This is six times the original investment, with absolutely no risk. Considering in the same 3 month period maybe I'd get 2-3k from a Mortimer report, there's no reason I'd invest in a map property.

HS

[Woonsocket]

This should be 2% per year, not per day HumanSanity. If it pays out 2% a day then it's set up wrong. Tomorrow should tell us if it was just paying out for this year or if it's more frequent than that. I will fix it to be 2% a year whatever that involves. For example, I don't have any interest at all yet. So please let me know if you got another 4K or if this is a one-time occurrance.

[HumanSanity]

May 30, 2016 16:14:17 GMT -5 Woonsocket said:

This should be 2% per year, not per day HumanSanity. If it pays out 2% a day then it's set up wrong. Tomorrow should tell us if it was just paying out for this year or if it's more frequent than that. I will fix it to be 2% a year whatever that involves. For example, I don't have any interest at all yet. So please let me know if you got another 4K or if this is a one-time occurrance.

Hey Woon, it may not have showed up on your record of transactions but it might have been added to your total. My bank shows a deposit of around 208k (with the balance previously being zero) and a balance of 212k now. It doesn't necessarily record an interest payment but it does indicate that interest was added.

[Hahiha / USSR]

I'm glad that when I asked for it months ago it was finally implemented.

[Tanzoria]

#jobsandgrowth

[Hahiha / USSR]

Alright, I found out that the bank pays compoundly so I have an algebraic expression for anyone who wants to figure out how much they'll make.
y=ending amount of money, x=days until you're checking, a=starting amount of money, b=daily interest
y=a(1+b)^x
I already simplified it to determine how much you'll get when you wait x days.
y=a(1.00005479452)^x
Just put in starting money and how long you want to wait then solve for y (you can also plot how much you'll make).

[Republic of Tikistan]

Jun 6, 2016 17:41:47 GMT -5 Hahiha / USSR said:

Alright, I found out that the bank pays compoundly so I have an algebraic expression for anyone who wants to figure out how much they'll make.
y=ending amount of money, x=days until you're checking, a=starting amount of money, b=daily interest
y=a(1+b)^x
I already simplified it to determine how much you'll get when you wait x days.
y=a(1.00005479452)^x
Just put in starting money and how long you want to wait then solve for y (you can also plot how much you'll make).

Your totally a nerd 

[Hahiha / USSR]

No, I just happened to learn a formula for compounding interest in my math class; why it was taught, dunno. Either way, it takes a really long time to earn any significant money through compounding interest at the rate of 0.005479452% (this number was found by taking 2% and dividing it by 365 days: 0.02/365=0.00005479452 or 0.005479452%) per day, just be glad it's per day and not per year.

[Louisistan]

Jun 6, 2016 20:01:01 GMT -5 Hahiha / USSR said:

why it was taught, dunno.

Ah. We have stumbled unto the very core of what is wrong with modern education system. You got this formula shoved down your throat and they didn't tell you why?

Here's why: Compound interest is everywhere. Seriously. If you put money in the bank, there's interest and where there's interest, there's compound interest. Okay, that was a lie, you don't get interest when you put money in the bank nowadays. But 10 years ago, that was a thing. I swear!
Here's an even more important reason: Interest and compound interest are a thing if you borrow money as well. Most adults loan money from a bank at one point or another in their lives. Be it to buy a car, a house, or in the case of you (because you're from the U.S.), to go to university or for any sort of prohibitively expensive medical procedure. If you can't handle the basics of interest and compound interest when loaning money, you're going to end up either bankrupt or with a set of broken thumbs, depending on who you loaned money from.

I'm not kidding around, this is important stuff and your teachers are morons for not telling you so. Unfortunately schools don't care about motivating you to learn. They just want you to learn.

End of rant.

[Hahiha / USSR]

Well, the word problems were used in context, they just never explicitly said it; unless I saw sleeping then.

[Woonsocket]

May 30, 2016 20:49:32 GMT -5 HumanSanity said:

May 30, 2016 16:14:17 GMT -5 Woonsocket said:

This should be 2% per year, not per day HumanSanity. If it pays out 2% a day then it's set up wrong. Tomorrow should tell us if it was just paying out for this year or if it's more frequent than that. I will fix it to be 2% a year whatever that involves. For example, I don't have any interest at all yet. So please let me know if you got another 4K or if this is a one-time occurrance.

Hey Woon, it may not have showed up on your record of transactions but it might have been added to your total. My bank shows a deposit of around 208k (with the balance previously being zero) and a balance of 212k now. It doesn't necessarily record an interest payment but it does indicate that interest was added.

Thanks, HS. I'm actually getting interest now so it's all good! I'm glad too as it shows me the program is working.

[Boltor]

Jun 7, 2016 6:22:58 GMT -5 Louisistan said:

Jun 6, 2016 20:01:01 GMT -5 Hahiha / USSR said:

why it was taught, dunno.

Ah. We have stumbled unto the very core of what is wrong with modern education system. You got this formula shoved down your throat and they didn't tell you why?

Here's why: Compound interest is everywhere. Seriously. If you put money in the bank, there's interest and where there's interest, there's compound interest. Okay, that was a lie, you don't get interest when you put money in the bank nowadays. But 10 years ago, that was a thing. I swear!
Here's an even more important reason: Interest and compound interest are a thing if you borrow money as well. Most adults loan money from a bank at one point or another in their lives. Be it to buy a car, a house, or in the case of you (because you're from the U.S.), to go to university or for any sort of prohibitively expensive medical procedure. If you can't handle the basics of interest and compound interest when loaning money, you're going to end up either bankrupt or with a set of broken thumbs, depending on who you loaned money from.

I'm not kidding around, this is important stuff and your teachers are morons for not telling you so. Unfortunately schools don't care about motivating you to learn. They just want you to learn.

End of rant.

and



Important things like retirement funds/pensions are all about compound interest over 30-40 years.

Basic financial practices (saving money, loans, planning earnings/expenses [aka budgeting] and retirement planning) should really be taught properly to all the kids in high school, these are useful skills for everyone to have. Fail at these and like Louis said you're setting up to fail financially. The kids that don't learn these skills will probably learn these later on but would have lost out on a substantial amount (100,000-1,000,000+ depending on how late they learn/how much they earn) they could of had come retirement.

Heck even that hack John Oliver just did a show yesterday for the plebs about index funds vs active managed funds and how unsubstantial sounding 1-2% extra fees on active managed funds for retirement are a serious loss over 30 years.

[Hahiha / USSR]

I'm aware that it is important, I just needed to say something so I could post this photo though.

[Keam]

This is a good thing. Thank you.

[Taco Island Charities]

This idea has won this year's Paffnia Prize: 10000islands.proboards.com/thread/33389/fifth-annual-paffnia-prize-winners

[Echolilia]

Did the bank stop paying interest? I haven't gotten any the last few days.

[Ater Nox]

You only get interest on days you post on the forum, and posting on mobile doesn't count. Is that part of the issue?

[Echolilia]

Oct 8, 2018 22:45:05 GMT -5 Ater Nox said:

You only get interest on days you post on the forum, and posting on mobile doesn't count. Is that part of the issue?

Don't think so. I do try not to post on mobile, and have been posting, I thought. Did get interest today though.

[The Mad Surfer]

Could be a news story here