Einstein's tip: Happiness and compounding

Jurgis · October 25, 2017

Assuming the tip would have been $1, what was the compounded rate of return on the note?

Assuming the note would have been sold for expected $8000, what would have been the compounded rate of return?

Is Einstein's theory of happiness right?

No peeking... 8)

...

16.2% rate in the first case.

9.92% rate in the second case.

So, it appears the note was a great tip. 8)

And it appears that not that big difference in rate of return yields hugely different results after 95 years. (But all of you already knew that ;)).

I'll let others debate if the happiness tip was also great tip. 8)

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