←
Boss lesson · The Savings Ledger
The ledger, by hand
score 0

The ledger, by hand

This is the boss. No calculator — the account pays a clean 10% and the deposit is round hundreds, chosen to fit in your head. One deposit, three years, and you will write the ledger the way a banker once did: each year's interest computed on the CURRENT balance, each new balance feeding the next line. One early slip rolls all the way down the page — and so does one clean line.

Everything in the chapter rides along: simple interest per line, compounding across the lines, the simple-path comparison at the bottom, and the rule of 72 to close the book. 5★ under par here is the chapter crown. Sharpen the pencil.

PrIt

I=P r tI = P \, r \, t

  • II= Interest earned
  • PP= Principal
  • rr= Interest rate per period (decimal)
  • tt= Number of periods
Simple Interest solver →
PArnt

A=P(1+rn)ntA = P \left( 1 + \frac{r}{n} \right)^{n t}

  • AA= Final amount
  • PP= Principal
  • rr= Interest rate per period (decimal)
  • nn= Compounds per period
  • tt= Number of periods
Compound Interest (Periodic) solver →
in

n≈0.72in \approx \frac{0.72}{i}

  • nn= Periods to double
  • ii= Rate per period
Rule of 72 (Doubling Time) solver →
no calculator in the boss room — the numbers are chosen to fit in your head