Why I'm Worried About the Repo Market

Re:Why I'm Worried About the Repo Market by quaquaqua1 on Thursday September 26, 2019 @11:48AM (#21082101)

1% APY compounded monthly, which is roughly below inflation. And it's taxed of course.

Isn't your second statement the same as the first? 1200 dollar balance returns $1 per month, or $12 per year?

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Re:Why I'm Worried About the Repo Market by BoiledCabbage on Friday September 27, 2019 @11:56PM (#21098335)

Technically (1 + (x/12))^12 != (1 + x)

In this case where x = 1% (or .01) they're so close it almost doesn't matter. For x = 10% it's a lot clearer.

That said, it's also not equal to (1 + y) ^ 12, where y is whatever value is needed to have (1 + y) ^ 12 = 1 + x.

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