Behold the Power of Higher Returns – Orangutans Galore and More

With Group 2, Wilma does everything she did with Group 1, but adds a few touches to increase the rate of growth even more. She takes the orangutans bowling every Monday night and starts a bingo night every Thursday evening. There are classes in macramé, ceramic painting, and French. The 12 orangutans in Group 2 become more cultured, refined, and civil in dealing with each other. She introduces aerobics and jogging. Once again, they don’t like it, but she prevails through the constant application of her charm and grace. They become more fit, by virtue of the increased exercise, and hence more attractive to each other, and once again, the rate of growth increases by 1 %. The rate of growth for Group 2 throughout the years is 10 ¹/₃ %. She puts in the money each year to add one orangutan to this group also.

Wilma and Willy’s Orangutan Group 2 Starting with 12 Animals when Wilma is 20

(Growth Rate of 10 ¹/₃ % with 1 Orangutan Added at Beginning of Each Year)

Wilma’s Age: 20 Number of Orangutans: 12

Wilma’s Age: 21 Number of Orangutans: 14

Wilma’s Age: 22 Number of Orangutans: 17

Wilma’s Age: 23 Number of Orangutans: 20

Wilma’s Age: 24 Number of Orangutans: 23

Wilma’s Age: 25 Number of Orangutans: 26

Wilma’s Age: 26 Number of Orangutans: 30

Wilma’s Age: 27 Number of Orangutans: 34

Wilma’s Age: 28 Number of Orangutans: 39

Wilma’s Age: 29 Number of Orangutans: 44

Wilma’s Age: 30 Number of Orangutans: 50

Wilma’s Age: 31 Number of Orangutans: 56

Wilma’s Age: 32 Number of Orangutans: 63

Wilma’s Age: 33 Number of Orangutans: 71

Wilma’s Age: 34 Number of Orangutans: 79

Wilma’s Age: 35 Number of Orangutans: 88

Wilma’s Age: 36 Number of Orangutans: 99

Wilma’s Age: 37 Number of Orangutans: 110

Wilma’s Age: 38 Number of Orangutans: 122

Wilma’s Age: 39 Number of Orangutans: 136

Wilma’s Age: 40 Number of Orangutans: 151

Wilma’s Age: 41 Number of Orangutans: 168

Wilma’s Age: 43 Number of Orangutans: 207

Wilma’s Age: 45 Number of Orangutans: 254

Wilma’s Age: 50 Number of Orangutans: 423

Wilma’s Age: 55 Number of Orangutans: 698

Wilma’s Age: 56 Number of Orangutans: 771

Wilma’s Age: 57 Number of Orangutans: 852

Wilma’s Age: 58 Number of Orangutans: 941

Wilma’s Age: 59 Number of Orangutans: 1039

Wilma’s Age: 60 Number of Orangutans: 1148

Wilma’s Age: 61 Number of Orangutans: 1267

Wilma’s Age: 62 Number of Orangutans: 1399

Wilma’s Age: 63 Number of Orangutans: 1545

Wilma’s Age: 64 Number of Orangutans: 1706

Wilma’s Age: 65 Number of Orangutans: 1883

Wilma’s Age: 66 Number of Orangutans: 2079

Wilma’s Age: 67 Number of Orangutans: 2295

Wilma’s Age: 68 Number of Orangutans: 2533

Wilma’s Age: 69 Number of Orangutans: 2796

Wilma’s Age: 70 Number of Orangutans: 3086

For Wilma’s parents, the total for a growth rate of 8 ¹/₃ % with the addition of 1 orangutan each year was 1353 at age 70.

For Wilma and Willy with a growth rate of 10 ¹/₃ % and with adding 1 orangutan each year, the total number of orangutans is 3086.

There are 1733 more orangutans at the end at 10 ¹/₃ % growth than there was at 8 ¹/₃ % growth.

An increase of 2 % in the rate of return has caused an increase of 128 % in the number of orangutans at the end. This illustrates how much impact a small increase in the rate of return can have over the long run.

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