Beat Inflation: Save Bank of Euler

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“Bank President” Leonhard Euler

With banks giving about 0.1% interest on savings, and stock investments being rather risky, here is an institution, the Euler, pronounced “Oiler”, Bank, which will do very well by your savings. The bank gives only 1% interest, not that much more than 0.1%, but to see the efficacy of a bank to generate money, we also have to look at the compounding of a deposit. Let’s let your deposit be $1.00 and look at some compound rates @ 0.1%.

Compounding of Deposits

Compounds/Year   Yield

1                      1.010025           

10                   1.01004512

100                1.010049662

1000              1.010050117

The table shows that as the number of compounding per year increases yield increases. But this bank offers a more interesting compounding feature. The Euler bank compounds not annually, not monthly, not daily, not hourly, not minutely, not secondly, not — well, let’s just end this by saying it compounds infinitely often in a year – a mathematician would say it compounds continuously.

One dollar deposited in the Euler bank will yield more than $2.718281828…, which amounts to 271.8281828…% in a bank compounding yearly. This percentage value is special in that it appears in many other mathematical contexts. The value has been called “e” after the founder of the bank, Euler.

But There is No Euler Bank!

As of now there is no Euler bank in the U.S. In fact there are none in any country that I have investigated. Let’s all keep looking, and be sure to tell me if you find one.

Note: You might also enjoy Is Economics a Science? Giffen’s Paradox Shouts “No!”

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