Fibonacci (1170-1250), probably the most famous mathematician of the Middle Ages.
01-14-2012, 12:42 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...

Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,884
Fibonacci (1170-1250), probably the most famous mathematician of the Middle Ages.

For folks that follow Milevsky, this is a pretty good look at a brief history of the cash flows.

Quote:
 Lenny had a problem. A close friend of his invested some money a few years prior, in a local Italian bank — in Pisa actually — that had promised him steady interest of 4 percent per month. Rather than sitting by and letting the money rapidly grow and compound over time, Lenny’s friend started withdrawing large and irregular sums of money from the account every few months. These sums were soon exceeding the interest he was earning and the whole process was eating heavily into his capital. To make a long story short, Lenny was approached by this friend and asked how long the money would last, if he kept up these withdrawals. Reasonable question, no? Now, if I were Lenny, I would have pulled out my handy HP business calculator, entered the cash flows, pushed the relevant buttons and quickly obtained the answer. In fact, with any calculator these sorts of questions can be answered quite easily using the technique known as “present value analysis” — which is something all business school professors teach their finance students on the first day of class.
Quote:
 To be honest, Lenny didn’t have a calculator at all because they hadn’t been invented yet. You see, Lenny was asked this question over 800 years ago, in the early part of the 13th century. But to answer it — which he certainly did — he invented a technique that today is called present value analysis. Yes. The one I mentioned we teach business students. You might have heard of Lenny by his more formal name: Leonardo Pisano filius (“family,” in Latin) Bonacci, a.k.a. Fibonacci (1170-1250), probably the most famous mathematician of the Middle Ages.
The Debt Retirees Owe to Fibonacci
__________________

__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.

 Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free! Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE! You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more! Join Early-Retirment.org For Free - Click Here
01-14-2012, 05:40 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...

Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,620
Quote:
 Originally Posted by mickeyd The Debt Retirees Owe to Fibonacci
A debt his fellow countryman, Carlo Pietro Giovanni Guglielmo Tebaldo ("Charles") Ponzi, from the town of Lugo, tried to cancel in a later century.

I've often wondered at how Italy could produce such an incredible number of astounding talents (not just when they invented modern banking, but in virtually every scientific field as well), yet totally mess up their own economy.
__________________

__________________
Pas de lieu Rhône que nous.

 01-14-2012, 09:06 PM #3 Give me a museum and I'll fill it. (Picasso)Give me a forum ...   Join Date: Jan 2006 Location: Rio Grande Valley Posts: 16,512 I first encountered the Fibonacci sequence when studying frequency modulation (FM) in college. It was pretty mind-blowing then. Later, I was very surprised to see it used in technical analysis charts for investing. I didn't realize Fibonacci was from the medieval (or is it actually Renaissance) period. Yes - many brilliant Italians! __________________ Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
 01-14-2012, 09:19 PM #4 Give me a museum and I'll fill it. (Picasso)Give me a forum ...   Join Date: Dec 2004 Location: the City of Subdued Excitement Posts: 5,293 Italy only got into trouble after it became a single political unit--a country. It was only unified in 1861. In industrial management, there is a theory that economies of scale stop at the plant level. I am wondering if a similar case could be made about political systems--cities vs countries. __________________ my bumpersticker: "I am not in a hurry. I am retired. And I don't care how big your truck is."

 Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)