Tuesday, May 15, 2007

Bubble in Real Estate?

Why Is Southern California Housing So Expensive?

There is an excellent article here

Monday, May 14, 2007

HOW TO - Innovation and Leadership

At Wharton's 125th Anniversary a debate about how to lead in a way that fosters innovation?


  1. Talk to customers and see what is causing them to be unproductive. Try to solve those that might lead to innovation
  2. Passion for work.
  3. Good People in your company who are willing to learn everyday
  4. You cant work hard at something that you dont like/love and you cant succeed without working hard.
Good Luck!!!

HOW TO - Finding Rate of Return

Problem - Find what interest was earned on an annuity in which you gave $6000 3 years back and now has $6957?

Solution

FV = 6957
PV = 6000


METHOD 1 = NTH ROOT MANNER
(1+R)pow 3 = (6957/6000)
1+R = Cube Root of (6957/6000)
1+R = 1.05
So Rate of return was 5%



METHOD 2 = LOGARITHM MANNER
(1+R)pow 3 = (6957/6000)
Take log on both sides

3 Log (1+R) = Log (6957/6000)

Log (1+R) = 0.0214

In general if we have to find the log of a number what are we finding?
We are finding an exponent to which we will raise the base (in this case 10) to get that number.

e.g Log (100) = Exponent we will raise 10 to get 100 which is 2

In the above case we already have the exponent to which we will raise 10 to get (1+R)

So that means (1+R) = 10 pow (0.0214)

1+R = 1.05
R = 5% in this case also

Reference

http://support.microsoft.com/kb/214116


=LOG(n,b) Log base b of n =LOG(8,2) 3

=(b)^(x) Inverse log of the =2^3 8
number x, base b

=LOG10(n) Log base 10 of n =LOG10(100) 2

=10^(x) Inverse log of the =10^2 100
number x, base 10

=LN(n) Natural log of n =LN(100) 4.6051702

=EXP(x) Inverse natural =EXP(4.6051702) 100
log of the number x

Sunday, May 6, 2007

New Investor Information

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