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RE: Steemit Power Down Proposal

in #steemit4 years ago (edited)

@mehta, I don't think you understood what @acidyo was talking about.
Besides, your calculations are too simple.

2weeks / 52weeks = 0.154% for two weeks. and for 2 years it will be 7% * 2year / 1year = 14% for two year.

Dude, you forgot to calculate for compound interest in your equations.

Let's imagine a 1000$ deposit at 7% a year compounded monthly (Steem is compounded much more frequently
Year | Year Interest | Total Deposits | Total Interest | Balance
1 | $72.29 | $1,000.00 | $72.29 | $1,072.29
2 | $77.52 | $1,000.00 | $149.81 | $1,149.81

Compounded monthly, 7APR will net you 14.981% over 2 years, not 14%. (Daily compounded would net 15.026%) Please get yourself a financial education.

Do you not know how banks work?

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@abitcoinskeptic I understand what is @acidyo is talking. I am just explaining the banking general concept for clarifying his confusion. Which i think he understand.
Here are we just discussing agree or disagree the concept of steemit proposal not 100% right calculation. You know what i means. Hope you understand.