So have anyone ever wondered: How much posts/registrations/treads per day do I need to actually make profit in the My-Plaza investments?

Well, I've done some maths for you (if you care at all, which most of you probably won't.)

If you can't be stuffed trying to understand it, just read the red bits.
...

Investment in posts:

Firstly, wee will have to understand that wee are getting 1.95% interest every day. So how much E-Pigs needed is not as simple as dividing 0.7 by 14 then dividing that by 0.0001. Because money gotten earler could be sitting in the bank collecting interest, thus will be worth more than money gotten later, and wee need to take that into consideration.

Assuming that there is a constant amount of posts every day (otherwise it would become quite complicated), Then the investment would simply be an annuity (Payment which consists of a constant cash flow every equal length period for a set number of periods) paying some amount of E-Pigs per period for 14 periods.

The present value of an anuity is calculated as

PV = F*[1-(1+r)^(-n)]/r

Where

PV = present value, which is 0.7 E-Pigs for our case.
F = cash flow, how much E-Pigs every day, which is what wee want to find.
r = rate of return, or the interest rate. Which is 1.95%, or 0.0195 for our case.
n = number of periods, which is 14 for our case.

Plugging in some numbers, wee have

PV = F*[1-(1+r)^(-n)]/r
0.7 = F*[1-(1+0.0195)^(-14)]/0.0195
F = 0.7/{[1-(1+0.0195)^(-14)]/0.0195}
F = 0.057618105

So wee will need to be able to earn more than 0.057618105 E-Pigs per day in order for it to be worth it.

Wee get 0.0001 E-Pigs for each post, so wee will need 0.057618105/0.0001 = 576.18105 posts.

Wee will need more than 576.18105 posts per day to make profit.

... ...

Investment in Threads:

Same process.

Can't be stuffed writing out the working, so here's the answer. Wee will need more than 37.04021061 threads per day to make profit.

... ...

Investment in Registrations:

Wee will need more than 16.46231582 registrations per day to make profit.


Enjoy~

(This post was last modified: 03/04/2008 05:01 AM by Assassinator.)

sticky Wrote:* Wolf's mind explodes, while trying to absorb the numbers

You also have to consider the cost of actually purchasing the investment too...

If it interests you, the code for actually calculating interest is:

(This post was last modified: 03/04/2008 05:10 AM by ZiNgA BuRgA.)

ZiNgA BuRgA Wrote:You also have to consider the cost of actually purchasing the investment too...

I did. That's the present value. I'm just using the present value to find the cash flows.

errr... isn't the whole point to calculate what number of posts/treds/registrations needed to cover the cost? It'll be a bit hard to do that without considering the cost...

(This post was last modified: 03/04/2008 05:18 AM by Assassinator.)

Oh so you did - sorry, I should read over things...

But then, you need to factor in that the bank can accept an arbitrary amount of money...
I see your point is that for the specified buying price, one or the other may be more efficient.

(This post was last modified: 03/04/2008 05:19 AM by ZiNgA BuRgA.)

ZiNgA BuRgA Wrote:But then, you need to factor in that the bank can accept an arbitrary amount of money...
I see your point is that for the specified buying price, one or the other may be more efficient.

Huh?

I think you're still mis-understanding what I'm trying to say.

What I'm doing is just calculating the amount of E-Pigs that I would need to get in order to make a profit, taking account of both the interest rate that would be lost if I undertake the investment instead of banking, and also the interest rate that would be gained for E-Pigs that are gotten at different periods of time.

The assumptions that I'm using are

1. that I am getting a constant amount of inflow every day, rather than different amounts.
2. that I'm getting the E-Pigs as I earn them, rather than getting them at the end all in 1 bunch at the end.
3. that interest is compounded every day, rather than, lets say, every week.

What does accepting arbitrary amounts of money, and efficiency have to do with it?

(This post was last modified: 03/04/2008 05:30 AM by Assassinator.)

ya im  jus confused.... lols

wow u took the full picture into account there assasinator
i wanted to do something similar to this but i was too lazy to do it