Board Thread:Off-Topic/@comment-202.150.1.24-20130118101104/@comment-151.77.197.91-20130723114749

SW8573 wrote:

Btd456Creeper wrote: You're right @151, but WAIT! *using 4/0 and 0/4 as an example*

In 10 rounds, seven 4/0 BRFs give $98000.

In 10 rounds, seven 0/4 BIAs give $157045, given that you take out the money 8 rounds after placing them and take it out again after 2 more rounds, which is more effective than letting it fill to $20000 and then taking out $1200, which would only give $148400. :P I believe you've done your maths incorrectly.
 * In 10 rounds, 7 4/0 BRFs give 7 × 2000 × 10 = $140,000
 * In 10 rounds, 7 BIAs &hellip; (rounding up)
 * Round 1: 1000
 * Round 2: 2200
 * Round 3: 3640
 * Round 4: 5368
 * Round 5: 7441.6 → 7442
 * Round 6: 9930 (from rounded value of 7442)
 * Round 7: 12916 (from rounded value of 9930)
 * Round 8: 16499.2 → 16500
 * Formula used: New value = (Original value × 1.2 (interest)) + $1000
 * Therefore, overall BIA investment = 7 × (2200 + 16500) = 7 × 18700 = $130,900.

Therefore, as $140,000 (BRF) > $130,900 (values rounded up) (BIA), 7 BRFs are better than 7 BIAs. ^ Exactly.