Quote:
Originally Posted by 711
I disagree in about 10 different ways. What you are suggesting is that members deposit EFDs, withdraw them, then redeposit right before the interest maturity date. If this were possible, there would be a MASSIVE increase in the number of EFDs in circulation. It would be the same as giving 1% interest per minute.
Please do a search on the concepts "simple interest" and "compounded interest" and you will hopefully understand things more clearly.
The EFD bank system uses simple database entries to calculate interest. If multiple deposits were allowed, the system would have to keep a separate timestamp for each deposit, in order to award the 1% interest per week properly. This would result in much more work in the database, and is not really the main priority of EF.
I try to introduce something fun and interesting (pun intended) for EF members, and all you seem to do is complain and say things to the effect of "it's not good enough"?  |
I'm just curious as to why the system is set up the way it is, and certainly didn't mean to upset you.
I'm trying to understand why it would be bad to make say Monday 1am the interest maturation date, as at worst it means the net volume of EFDs increases by 1% per week. How to get from here to "It would be the same as giving 1% interest per minute" boggles my mind. I am learning economics at the U of Chicago and I thought I understood this stuff lol. If you can be bothered to explain this one concept I promise I'll never post in this thread again
Oh, I think I understand simple and compound interest as that was why I voiced earlier than giving 2%(?) interest every 2 days was too extreme (3611% annual interest), and 1% per week is 68% annual interest, which doesn't seem too high (compared to IRL yes, but not nearly extreme as 3611%). When I can across the 1 week reset rule, I became curious as to why it was necessary and interest wasn't set to a certain time of the week hence my posts. Sorry again if I annoyed you lol, wasn't my intent.