Factorial investment is an interesting concept that combines mathematical factorials with financial investing. As factorials involve calculating the product of consecutive integers, it opens up possibilities of using factorial calculations to determine optimal investment amounts or cycles. With the power of computing, factorials can be quickly calculated to find useful patterns and insights. This article will explore core conclusions and key information on applying factorials in the context of investing, particularly around aspects like determining investment multiples, setting periodic investment goals, and identifying cycles or sequences with compounding growth. By leveraging the exponential nature of factorials, investors may uncover new perspectives on harnessing the power of maths and compounding in their investment strategies.
Use factorials to find ideal periodic investment multiples
One interesting application of factorials is using them to determine ideal periodic investment amounts. For example, if an investor starts with $1,000 and wants to increase the investment amount by a factorial every year, the investments would be $1,000, $2,000, $6,000, $24,000 etc. This creates an exponentially growing investment series. Other variations could be increasing by the factorial of the time period invested – so $1,000 invested for 1 year, $2,000 invested for 2 years, $6,000 invested for 6 years. Factorials provide a structured way of creating exponential growth in periodic investments, leading to rapidly compounded gains.
Apply factorial calculations to identify cycles and sequences
Factorials could also be used to identify useful cycles or sequences for dollar cost averaging strategies. For example, calculating 5! gives 120. This suggests an investment cycle of investing $100 monthly for 10 months, followed by a pause for 2 months (total 120 months). The repetitious cycle lines up neatly with the factorial result. Other examples include 3! indicating cycles of investing quarterly for a year, then taking a quarter off before repeating. Factorials thus provide natural cycles that align with regular periodic investment.
Factorial terms identify exponentially growing investment goals
Setting investment goals that increase by factorials is an exponential growth tactic. If goals double each period, they exhibit factorial growth. Starting with $10,000 and doubling each year leads to goals of $10k, $20k, $40k, $80k etc. The annual goals create a factorial sequence. This allows setting exponentially growing goals while sticking to a clear factorial mathematical basis. Doubling investment goals annually based on factorial growth pushes investors to increase investments while benefiting from compound interest.
In summary, factorials open up useful techniques for applying exponential maths concepts in investing. From determining periodic investment multiples to identifying useful cycles and setting exponentially growing goals, factorials create structures for leveraging compound growth. By tapping into the exponential nature of factorials, investors can uncover new perspectives for supercharging their investment returns through the power of mathematical compounding.