Re:Non-intuitive Examples of Compounding Returns
by omh on Thursday February 10, 2011 @06:32AM
(#2201580)
I agree about the effects of inflation, but why should things be plotted on a logarithmic scale?
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Re:Non-intuitive Examples of Compounding Returns
by rstonge on Thursday February 10, 2011 @12:31PM
(#2202767)
If you have constant return (e.g. 5%) this will show up as a linear growth function on a log scale. It will be exponential on a normal scale, which over time gets very steep. Using a log scale allows you to compare the growth rates of different investments in a consistent way.