Compound interest is a lie
Conversation
Compound interest is integration over time. In the limiting case, an unrestricted positive feedback loop. These don’t actually exist in nature. They either end in finite time or they’re accompanied by a hidden compensating compounding effect elsewhere that you’re not seeing.
2
3
7
One reason this is hard to see is that time is a single dimension with only 1 path between 2 points. This obscures decision-making. In space, climbing a cliff and driving up a road with switchbacks are 2 paths that “integrate” to same height, but are obviously different.
Replying to
The sigmoid function is more realistic than the exponential function.
Replying to
Unless of course you accept Einstein's relativistic corrections for Newtonian time



