

Re: Comparing yield between Vanguard MMF and Emigrant Direct?
11232006, 07:17 AM

#21

Moderator Emeritus
Join Date: Feb 2004
Location: minnesota
Posts: 13,212

Re: Comparing yield between Vanguard MMF and Emigrant Direct?
Quote:
Originally Posted by justin
I didn't think PEMDAS order of operations was that advanced? It is required to evaluate simple mathematical expressions. 4th grade math from what I recall. Certainly by 6th grade prealgebra it would be taught, right?
Of course, I was one of those guys that finished all of my calculus and diff eq for my engineering degree during high school. 8)

I remember 4th grade. In my school we learned long division and still were working on multiplication table drills. We used to have to stand by our desks and the teacher would give us each a multiplication problem. If you got it wrong you sat down. The last person standing won. Brought out the competitor in me.
__________________
__________________
.
No more lawyer stuff, no more political stuff, so no more CYA




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 EarlyRetirement.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!

Re: Comparing yield between Vanguard MMF and Emigrant Direct?
11232006, 10:42 AM

#22

Full time employment: Posting here.
Join Date: Jul 2005
Posts: 987

Re: Comparing yield between Vanguard MMF and Emigrant Direct?
Quote:
Originally Posted by HFWR
Well, you do have to enter it into a calculator this way...

don't need any parens on my calculator (no parens, no equal key)
.508 enter 365 / 1 + 365 ^ 1 
done
love RPN!
__________________
__________________
I have an inferiority complex, but it's not a very good one.



Re: Comparing yield between Vanguard MMF and Emigrant Direct?
11232006, 12:08 PM

#23

Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,636

Re: Comparing yield between Vanguard MMF and Emigrant Direct?
Quote:
Originally Posted by FIRE'd@51
Let A = (1 + R/N)^N = value of $1 in a year
Ln A = N Ln (1 + R/N) where Ln is the natural log
as N goes to infinity, Ln (1 + R/N) ~ R/N
Ln A ~ N x (R/N) = R
therefore A = e^R
if R = 0.05 , A = e^0.05 = 1.05127 so the continuously compounded APR = 5.127%

"This is your brain on bond funds. Any questions?"
Quote:
Originally Posted by bosco
love RPN!

I was wondering when that would come up. It's the mathematics equivalent of Godwin's law...
__________________
*
*
The book written on ER.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.



Re: Comparing yield between Vanguard MMF and Emigrant Direct?
11232006, 12:55 PM

#24

Full time employment: Posting here.
Join Date: Sep 2006
Posts: 608

Re: Comparing yield between Vanguard MMF and Emigrant Direct?
Quote:
Originally Posted by FIRE'd@51
Let A = (1 + R/N)^N = value of $1 in a year
Ln A = N Ln (1 + R/N) where Ln is the natural log
as N goes to infinity, Ln (1 + R/N) ~ R/N
Ln A ~ N x (R/N) = R
therefore A = e^R
if R = 0.05 , A = e^0.05 = 1.05127 so the continuously compounded APR = 5.127%

Wow, cool. The good old natural logarithm.
But I don't quite see why it's obvious that Ln(1+R/N) goes to R/N
as N goes to infinity (even though a calculator quickly reveals that it's true).
Perhaps the powerseries expansion ?



Re: Comparing yield between Vanguard MMF and Emigrant Direct?
11232006, 01:09 PM

#25

Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 2,366

Re: Comparing yield between Vanguard MMF and Emigrant Direct?
Quote:
Originally Posted by JohnEyles
But I don't quite see why it's obvious that Ln(1+R/N) goes to R/N
as N goes to infinity (even though a calculator quickly reveals that it's true).
Perhaps the powerseries expansion ?

Yep, for 1 < x < 1, Taylor expansion for Ln (1 + x) = x  (1/2) x^2 + (1/3) x^3  ...............
If x << 1, then Ln (1 + x) ~ x , since other terms in alternating series go to 0 much faster
__________________
I'd rather be governed by the first one hundred names in the telephone book than the Harvard faculty  William F. Buckley



Re: Comparing yield between Vanguard MMF and Emigrant Direct?
11232006, 01:32 PM

#26

Thinks s/he gets paid by the post
Join Date: Oct 2006
Location: NorthCentral Illinois
Posts: 3,200

Re: Comparing yield between Vanguard MMF and Emigrant Direct?
Quote:
Originally Posted by setab
This whole string reminds me of why I put my funds somewhere and forget them. I can do the equations, but don't want to.
setab

Geesh!!! Ya got that right!!! :P
I'm soon to be FIRE'd as a laboratory manager, and look forward to a MAJOR lack of equations in my daily life!!!



Re: Comparing yield between Vanguard MMF and Emigrant Direct?
11242006, 08:51 AM

#27

Full time employment: Posting here.
Join Date: Jul 2005
Posts: 987

Re: Comparing yield between Vanguard MMF and Emigrant Direct?
Quote:
Originally Posted by Nords
"This is your brain on bond funds. Any questions?"
I was wondering when that would come up. It's the mathematics equivalent of Godwin's law...

Hitler liked RPN too!
(=Godwin ^ 2)
__________________
__________________
I have an inferiority complex, but it's not a very good one.





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


Thread Tools 
Search this Thread 


Display Modes 
Linear Mode

Posting Rules

You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off




» Recent Threads













