Scotto74
taking a break
option 1
------------------Years 1 - 10 earning compouding interest at 4%
Year 1---- 10,000,000 - 10,400,000 - 10,816,000 - 11,248,640 - 11,698,586 - 12,166,529 - 12,653,190 - 13,159,318 - 13,685,691 = 14,233,118
Year 2---- - 9,000,000 - 9,360,000 - 9,734,400 - 10,123,776 - 10,528,727 - 10,949,876 - 11,387,871 - 11,843,386 = 12,317,121
Year 3---- - - 8,000,000 - 8,320,000 - 8,652,800 - 8,998,912 - 9,358,868 - 9,733,223 - 10,122,552 = 10,527,454
Year 4---- - - - 7,000,000 - 7,280,000 - 7,571,200 - 7,874,048 - 8,189,010 - 8,516,570 = 8,857,233
Year 5---- - - - - 6,000,000 - 6,240,000 - 6,489,600 - 6,749,184 - 7,019,151 = 7,299,917
Year 6---- - - - - - 5,000,000 - 5,200,000 - 5,408,000 - 5,624,320 = 5,849,293
Year 7---- - - - - - - 4,000,000 - 4,160,000 - 4,326,400 = 4,499,456
Year 8---- - - - - - - - 3,000,000 - 3,120,000 = 3,244,800
Year 9---- - - - - - - - - 2,000,000 = 2,080,000
Year 10--- - - - - - - - - = 1,000,000
Total after 10 years ---------------------------------> 69,908,393
option 2
Year 1 1,000,000 - 1,040,000 - 1,081,600 - 1,124,864 - 1,169,859 - 1,216,653 - 1,265,319 - 1,315,932 - 1,368,569 = 1,423,312
Year 2 - 2,000,000 - 2,080,000 - 2,163,200 - 2,249,728 - 2,339,717 - 2,433,306 - 2,530,638 - 2,631,864 = 2,737,138
Year 3 - - 3,000,000 - 3,120,000 - 3,244,800 - 3,374,592 - 3,509,576 - 3,649,959 - 3,795,957 = 3,947,795
Year 4 - - - 4,000,000 - 4,160,000 - 4,326,400 - 4,499,456 - 4,679,434 - 4,866,612 = 5,061,276
Year 5 - - - - 5,000,000 - 5,200,000 - 5,408,000 - 5,624,320 - 5,849,293 = 6,083,265
Year 6 - - - - - 6,000,000 - 6,240,000 - 6,489,600 - 6,749,184 = 7,019,151
Year 7 - - - - - - 7,000,000 - 7,280,000 - 7,571,200 = 7,874,048
Year 8 - - - - - - - 8,000,000 - 8,320,000 = 8,652,800
Year 9 - - - - - - - - 9,000,000 = 9,360,000
Year 10 - - - - - - - - = 10,000,000
Total after 10 years ---------------------------------> 62,158,785
at the end of 10 years option one will have a bank account of this much more then option 2 ---------------------> 7,749,608 all earned from the same 55 million dollar contract the only difference is front loading the deal and taking the money in the begining of the contract not the end of the contract.
------------------Years 1 - 10 earning compouding interest at 4%
Year 1---- 10,000,000 - 10,400,000 - 10,816,000 - 11,248,640 - 11,698,586 - 12,166,529 - 12,653,190 - 13,159,318 - 13,685,691 = 14,233,118
Year 2---- - 9,000,000 - 9,360,000 - 9,734,400 - 10,123,776 - 10,528,727 - 10,949,876 - 11,387,871 - 11,843,386 = 12,317,121
Year 3---- - - 8,000,000 - 8,320,000 - 8,652,800 - 8,998,912 - 9,358,868 - 9,733,223 - 10,122,552 = 10,527,454
Year 4---- - - - 7,000,000 - 7,280,000 - 7,571,200 - 7,874,048 - 8,189,010 - 8,516,570 = 8,857,233
Year 5---- - - - - 6,000,000 - 6,240,000 - 6,489,600 - 6,749,184 - 7,019,151 = 7,299,917
Year 6---- - - - - - 5,000,000 - 5,200,000 - 5,408,000 - 5,624,320 = 5,849,293
Year 7---- - - - - - - 4,000,000 - 4,160,000 - 4,326,400 = 4,499,456
Year 8---- - - - - - - - 3,000,000 - 3,120,000 = 3,244,800
Year 9---- - - - - - - - - 2,000,000 = 2,080,000
Year 10--- - - - - - - - - = 1,000,000
Total after 10 years ---------------------------------> 69,908,393
option 2
Year 1 1,000,000 - 1,040,000 - 1,081,600 - 1,124,864 - 1,169,859 - 1,216,653 - 1,265,319 - 1,315,932 - 1,368,569 = 1,423,312
Year 2 - 2,000,000 - 2,080,000 - 2,163,200 - 2,249,728 - 2,339,717 - 2,433,306 - 2,530,638 - 2,631,864 = 2,737,138
Year 3 - - 3,000,000 - 3,120,000 - 3,244,800 - 3,374,592 - 3,509,576 - 3,649,959 - 3,795,957 = 3,947,795
Year 4 - - - 4,000,000 - 4,160,000 - 4,326,400 - 4,499,456 - 4,679,434 - 4,866,612 = 5,061,276
Year 5 - - - - 5,000,000 - 5,200,000 - 5,408,000 - 5,624,320 - 5,849,293 = 6,083,265
Year 6 - - - - - 6,000,000 - 6,240,000 - 6,489,600 - 6,749,184 = 7,019,151
Year 7 - - - - - - 7,000,000 - 7,280,000 - 7,571,200 = 7,874,048
Year 8 - - - - - - - 8,000,000 - 8,320,000 = 8,652,800
Year 9 - - - - - - - - 9,000,000 = 9,360,000
Year 10 - - - - - - - - = 10,000,000
Total after 10 years ---------------------------------> 62,158,785
at the end of 10 years option one will have a bank account of this much more then option 2 ---------------------> 7,749,608 all earned from the same 55 million dollar contract the only difference is front loading the deal and taking the money in the begining of the contract not the end of the contract.