I read the article . It is a joke.Missed the point entirely - I agree that profit on a transaction is not equal to income. However, this is not what the article discusses. The main point made is the compounding nature of the business model.
$4.3 is not even actual income on $100 invested which the article assumes.
The real income maybe $1 per $100 invested after accounting for employment, operating and transaction expenses.
IMHO and DYORI read the article . It is a joke.
$4.3 is not even actual income on $100 invested which the article assumes.
The real income maybe $1 per $100 invested after accounting for employment, operating and transaction expenses.
IMHO and DYOR
To quoteAfterpay can earn much more than 4.17%.
This is because of compounding interest. Suppose a $1,000 loan is made on January 1 at an interest rate of 4%, for two months. On March 1, $1,040 is collected – the original $1,000 plus $40 interest.
Another loan is made on March 1 – $1,040 at a 4% rate, for two months. On May 1, $1,081.60 is collected – the original $1,040 plus $41.60 interest.
This can be repeated again and again. By December 31 the initial $1,000 has grown to $1,265.32. This equates to a 26.5% annual interest rate.
Hope this helps
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