Billionaire's Formula

FV = PV * (1+r)^n

FV = future value of money
PV = present value of money
r = rate of return or interest rate
n = period or time

It's really as simple as this, not new but I guess a seldom used formula. Let's decipher this formula into a more realistic business point of view.

As an example I will illustrate Mr. Bill Gates, Microsoft Inc.

FV(Bill Gates) = PV (invented operating system) * (1 + r (microsoft sales)) to the power of n (number of years microsoft has been around)

If Bill Gates started with 1 cent as a present value of his operating system and sold 2 the first year, 4 on the 2nd year, 8 on the 3rd year, 16 on the 4th, and so forth for the next 30 years. His Future Value will be = $ 10,737,418.24. But he sold and still selling way more than that. That's why he's a billionaire. Money begets money and when it reaches a critical mass it'll be like a snowball rolling downhill turning into an avalanche.

$ 10,737,418.24 = .01 * (1 + 200%)^30


1: $.02
2: $.04
3: $.08
4: $.16
5: $.32
6: $.64
7: $1.28
8: $2.56
9: $5.12
10: $10.24
11: $20.48
12: $40.96
13: $81.92
14: $163.84
15: $327.68
16: $655.36
17: $1,310.72
18: $2,621.44
19: $5,242.88
20: $10,485.76
21: $20,971.52
22: $41,943.04
23: $83,386.08
24: $167,772.16
25: $335,544.32
26: $671,088.64
27: $1,342,177.28
28: $2,684,354.56
29: $5,368,709.12
30: $10,737,418.24

Simple? This computation is not new and I know it's easier said than done. However, save this formula, and if you find a money making business, work, or product, plug in your numbers in the formula and see for yourself that it actually work. Remember that you can also invest your money in stocks, real estate, etc. Leveraging your money to work for you is the key ingredient in this equation, and it doesn't matter whether you start small or large investment because you'll have the same constant formula in doubling your money.

As a bonus allow me to leave you this trivia question. Take a chess board and a grain of rice double that grain of rice on the 1st square, 4 grains on the 2nd, 8 grains on the 3rd and so forth until you fill in 64 squares. How much rice do you suppose you'll have?

Best of luck.




Billionaire's Formula from spiritwarrior on Comiqs

55 Comments:

Pinay Mommy said...

yes this formula is not a secret anymore but its pretty hard to do. but it proves very true!

amfufu said...

Hmmmmm.. This would be very handy.. I'll save this one for future reference.

Thanks.

Michael Aulia said...

I'm not really into statistics, mathematics and probabilities O_o

Jherson said...

its an investment formula
calculating compound interest I think. Its a very clever formula that we owe to our ancestores:D

I think
its like...
I = Prt
F = P (1+ r/m)^mt

Nairobian Perspective said...

interesting post!

Barry said...

If only I could get blog readership increases by the week on that formula!

Gregorio said...

I always like your posts they're insightful and always full of useful information.I just hope I can really put this one to the test real soon.

Noemi "Mica" Watson said...

hi there...blog and dropped here

SpIrItWaRrIoR said...

Pinay Mommy,

Thanks for dropping by :)

Amfufu,

Thanks for dropping by :)

Michael Aulia,

I'm not really into numbers but this formula somehow makes sense to me :)

Jherson,

You're right this has been around for ages and still works at present time :)

Nairobian Perspective,

Thanks for dropping by :)

Barry,

I wish the same, then we'll all be rich, lol

Gregorio,

Thanks. I like your art too so I keep dropping on you at entrecard:)

Noimi "Mica" Watson

Thanks for dropping by :) I drop on your entrecard.

RPM_Millionaire said...

Great formula... How are you using it? Please do give a small example, it doesn't need to be personal.

RPM Millionaire
---

joshuaun said...

my friend,so long time didnt come here!!!so sorry=p

how r u recently???=)

Selerines said...

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Gebeleizis said...

100% true.

Spunpuppy said...

only 1 problem. Bill Gates didn't invent an operating system. He bought it. For far less than it was really worth.

jeflin said...

Nice formula and you can see that once you hit your first million dollars, things start to get interesting.

I like reading your blog and will appreciate a link exchange.

Jeff
http://jeflin.net

BillyWarhol said...

I've made my first $Billion I just Hope the next $Trillion comes as EZ!!

;))

Jose Dennio P. Lim Jr. said...

I hate math but when math makes money, I would love it. :D

THE ANiTOKiD said...

Thanks for sharing the formula!

Denis Kanygin said...

interesting point.

As far as the rice puzzle goes - that 's a LOT of rice!

cheers,

Denis Kanygin
workoutiq.com
workoutiq.com/blog

ambrosiality said...

okay, hmm, un huh, yup I think I should go study for my GRE exam, especially since I haven't done math in a while, and I was baffled at solving the area of a right-angled triangle (but hey I could tell you theories in Sociology =)

I think this is easier
Prayer/ the secret + girl +love + male millionaire /Bill Gates - Prenup + wedding = ca-ching! lol

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Creative Business Idea said...

yes absolutely right actually it's easy to say but it's difficult to do.
Actually I've gotten this formula several years ago.

Thanks friend to remind & to refresh the useful rich formula.

Don't visit me! if u mind

Jesse said...

Hello, I was just dropping in and letting you know that you are currently one drop shy of being in the lead for my weekly entrecard dropping contest. Keep at it so you can win!

Good Luck and happy dropping!

Spife said...

Hm.. what if we take money devaluation and inflation into account?

kbguy said...

I thought i studied this in Statistics.

MONTERINES WORLD said...

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virtue said...

very nice article :)

jeflin said...

Hi, I have done a review of your blog here.
http://jeflin.net/2008/06/15/top-entrecard-droppers-2/

Cheers.

Ankit said...

this is just hypothetical model and very much impossible.

but it is intresting too

huoyangao said...

the real world are always different, though.

The Minking Than said...

I have blogged about a simple way to make money in business. It is so simple that most businesses normally ignore it. See what you think. By the way where do I go and prove you wrong? :-). I went through a few posts where I can start a debate but couldn't find any.

JollyRoger said...

Have you ever wondered just how he continues to make money hand over fist? Open source offers everything Bill does, and a lot of Open Source is STABLE.

michaelwong38@gmail.com, pls add me to your facebook said...

Hi, was wondering if you'd like to exchange links with me?
If yes, please leave your blog url as a comment at:
http://bigmoneylist.blogspot.com/
I'll link to you first, then when you have time link back k?
Thanks, Michael
BTW--I'm michaelwong38 on digg. If ever you want something dugg, just send me a shout anytime.

pun-dit said...

it looks great on paper but practically it is very very difficult (impossible),a lot of investment scams run cause they fool people with this formula promising them more money in less time.if i have understood it properly should we not consider the recurring investments and subtract them? :)

Ranjeet Kr. Vimal said...

Great.. i m going to save you in my blog roller

Jay-O said...

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AZ Blogging said...

I think most formulae work under normal circumstances. What are the "Normal Circumstances" for this? Just curious, never saw this formula before.

New York City Man said...

The doubling part is very hard. Also,the expenses that deplete the profits.

Jemi said...

I appreciate that you return ecard drops but I'm curious. Why are your posts becoming fewer and fewer? Nothing here since middle of May.

slovatt said...

Well I've got the 1 cent. After that things go little kafloowee.

Richard McLaughlin said...

your rice question is 2^63 - 2 raise to the 63 power, right?
9,223,372,036,854,775,808

Jaz said...

Awesome, if you somehow consictent in doing it it will not be impossible to achiev....

Drunken Dragon said...

I really love this Biologic formula.



Lol, just kiding. I know its not a biologic formula, it's phisic right?



:)

Gazza said...

@Richard: That's only the amount of rice on the last square. The question (traditionally) wanted to know how much rice you have in total, on all squares, so 2^63 + 2^62 + ... + 2^0 = 18,446,744,073,709,600,000

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screwy formula...
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Ezah said...

This is very helpful formula hehehe. Thanks for sharing, btw dropping my e-card here.

Anonymous said...

Nice calculation.Work?

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Mitch said...

Hmmm...just making my weekly round here.

Mich said...

hi can we exchange links?

Tomas Karkalas said...

Prior reading this post, I thought I was without a penny, but you convinced me in the otherwise reality..Thank you for the help to discover the millionaire in myself.

bryan said...

Well, there's a better statistics formula to this one. I just forgot what it is.