Fed helps market go up

On Tuesday March 18, 2008 the DOW Jones made history after six years. This has been the biggest increase since then. The Dow Jones went up over 400 points due to the interest rate going down. The Federal Reserve gave money to the DOW Jones and cut off 75% of the taxes. This was the reason the DOW Jones went up extremely. People are going to borrow money now since the interest rate for the bank is less. This will lead to the rise of the United States economy.

Compound Interest and the Rule of 72

Compound Interest is paid on the original principal and on the accumulated past interest. When you borrow money from a bank, you pay interest. Interest is really a fee charged for borrowing the money, it is a percentage charged on the principle amount for a period of a year.

Example:Annually = P × (1 + r) = (annual compounding)
Quarterly = P (1 + r/4)⁴ = (quarterly compounding)
Monthly = P (1 + r/12)¹² = (monthly compounding)


Rule of 72 is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest.dividing 72 by the annul rate of return investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself.


192,122.92 over 47 years at 8% saving 1 dollar a day.