The research team calculated that participants gained an average of 0.8 pound a year...It may not sound like much, but as the years go by "it becomes like compounded interest," adding up to 16 pounds over 20 years, said Dr. Jeffrey Schwimmer (emphasis added)I hate to be a boring finance pedant, but actually that is like simple interest, not compound interest. If eating french fries was like compound interest - then the amount of weight you'd put on would be a function of your existing weight.
A Finance Professor's blog. I am a Professor of Finance in the Poole College of Management at NC State University. My website: https://sites.google.com/ncsu.edu/warr Opinions are my own.
Thursday, June 23, 2011
French Fries and Compound Interest
An article in my local paper today (reprinted from the LA Times) talks about how much weight the average person puts on per year from eating potatoes. Why is this relevant to a finance blog you ask? Well, the article states that:
Subscribe to:
Post Comments (Atom)
What's going on with inflation?
I recently posted an article on the Poole College Thought Leadership page titled: " What's going on with inflation?" . This w...
-
I recently posted an article on the Poole College Thought Leadership page titled: " What's going on with inflation?" . This w...
-
Another inflation illusion post. This time with math. Again the issue here is that you can't just increase the discount rate when you a...
-
Sometimes I come across an academic research paper that is just so interesting I feel compelled to share it with my MBA students. This is o...
No comments:
Post a Comment