Physical Sciences and Mathematics Commons^™

Compound Interest And The Power Of Saving, Richard H. Serlin

Richard H. Serlin

This is an article with an included assignment that I give to my personal finance 1 students. The first part talks about the power of compound interest. I go into depth about the intuition why it's so powerful, why it takes off, and has been called the eighth wonder of the world. I've haven't seen anywhere else an extensive explanation of the intuition like I have here.

In the second part I give the students a nice assignment to see how much their savings can grow if they invest even a modest amount consistently, month in and month out, in …

Towards Better Estimation Of Jump Diffusion Models, Richard H. Serlin

Richard H. Serlin

I discuss in-depth modern techniques for the estimation of Jump Diffusion models with suggestions for improvements. There is a heavy focus on intuition. I also point out examples of the use of improper techniques (biased and inconsistent) in the top tier finance literature.