Just 30%

If you were to put $1 in an investment with a 100% return on your money each period, how many periods would it take for that $1 to become $1 million?

Period  $             1
1  $             2
2  $             4
3  $             8
4  $           16
5  $           32
6  $           64
7  $         128
8  $         256
9  $         512
10  $      1,024
11  $      2,048
12  $      4,096
13  $      8,192
14  $     16,384
15  $     32,768
16  $     65,536
17  $   131,072
18  $   262,144
19  $   524,288
20  $1,048,576

Now, let’s tax those returns by 30% every year. How much of a difference would that make by the end of the twentieth period?

Period  $             1
1  $             2
2  $             3
3  $             5
4  $             8
5  $           14
6  $           24
7  $           41
8  $           70
9  $         119
10  $         202
11  $         343
12  $         583
13  $         990
14  $      1,684
15  $      2,862
16  $      4,866
17  $      8,272
18  $     14,063
19  $     23,907
20  $     40,642

 

I found that to be an interesting comparison.*

 

*I’m not making a political statement of any sort, but since you asked, I admit that the money-loving side of me is feeling rather ill at the moment.

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Explore posts in the same categories: Frugal Living

One Comment on “Just 30%”

  1. accountingelf Says:

    Well, you’re basically getting a 70% return instead of 100%, no? And since you and I know that even 10% return can help you earn millions, that 30% difference is huge…

    How about extending the second list to see how long it would take you to get to 1,000,000 anyway? (6 more years. I spent my 15 minute lunch break calculating that!)


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