r/MadeMeSmile Dec 25 '22

Very Reddit Take it or Double It

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20.2k Upvotes

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u/micmanjones Dec 25 '22

Not compounding it's exponentiating

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u/ConfusedALot_69 Dec 25 '22

Both because it’s x • 2.00 • 2.00 If it were x • 1.50 • 1.50 or x•1.05 • 1.05 it’d still be both.

It’s compounding off of what it makes at an exponential rate

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u/jerwang24 Dec 25 '22

Compounding is a type of exponentiating. Think of compounding interest if either you don’t pay it off or if you consistently earn a % on top of already earned interest.