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BEST THE WEEKEND OUTLOOK Friday February Page 11 Peoples Forum- Rockel column questioned The Editor The good Paul Rockel in Money Matters mixes the Rule of not with the Doubling Constant 70 in investments It is useful to fix the confusion to let readers decide on RRSP investments on one hand as distinct from mor tgage payments on the other The bright young things in District High can follow easily and leam a couple of neat rules of thumb to help their future finan cial haggling Doubling Tripling and Quadrupling Investments Set I as investment F as final value R as the annual rate of in terest and N as the term of in vestment Allow e 2 the universal growth constant and In to be the lognthm to the base e and finally be the expo nent to the power of symbol The General Equation is For money to double For money to triple 3 For money to quadru ple Using the Doubling equation eRN Taking lognthms in in e The ruse de guerre is that In e so In 2 to Double The same logic allows us to write in 3 RN to Triple The same logic allows us to write in to Quadruple Since we know the values of in In and in 0 G9l 1 100 and 1 382 respectively we can correct for the percentage and multiply these values by and get the following table lateral Rale Time In Ycra Coaitanl Time In Year To Double TO 140 Each term is calculated by dividing the interest rate into the constant 911 IS 841 SI 81183 8883 TGI 19 SIS S3 S3 85 Me S3 of 78 Mortgage Rule Repayments 78 is the sum of all the digits between and 12 check it For a loan of at we would ex to pay interest of take my for it If this was amor tized as the poor consumer ex pects the Outstanding Balance would be shown in Column A But the bank uses a rule of 78 which assigns of to the first month to the second to the third and so on The outstanding balance is as shown under column its higher These are close on an annual loan But for say a loan over years at mon ths 125month payment of 129 83month total interest will be 40 The loan company would sum the l to 180 months 16290 and assign 147 73 to the first month 17916290 x 13369 292 14690 to the second etc Clearly with a payment of only after the first few months the outstanding amount exceeds the loan When clearing the mor tgage early these penalties prevail along with the interest penalty Few people working in finan cial institutions know of this ruse guerre legal scam See how lobbying helps your cause Bill Hyde Georgetown column defended To the Editor Re Mr Hydes letter Since I am responsible for sub mitting Paul columns to this newspaper I accepted the of fer to comment For readers who insist on ac curacy to many decimal points with all the is dotted and ts crossed read the chapter on the mathematics of finance specifically compound interest in the Financial Handbook revis ed edited by Jules I Ph This book is one of the dard university text books for graduate and undergraduate students in finance business mathematics and related sub jects Mr Hyde does not seem to have taken account of the frequency of compounding into his investment calculations it does make a dif ference Using Financial Hand book formulas 1000 invested at for 7 3 years which is the time Mr Hyde calculates for an investment at to triple yields when compound ed monthly and only 92 when compounded annually For the average investor it is not necessary to get into logarithms You can buy a hand held financial calculator for about 30 which will quickly do all the financial calculations the average person will ever need Im not surprised that Mr Hyde has not heard of the rule of many outside of the invest industry havent It is referred to in Venita Van Caspel book Money Dynamics for the as well as Sam Shanahan in The Working Life Of A Dollar just two of the many books on the subject The Rule of 72 is very simple and will help the average person to plan investments Rule of or 72 who cares close enough Paul has followed the concepts that he writes about in his personal investments and quite apart from his business sue cess has become a wealthy man by using them For many years he has shared the ideas that have worked for him with others Finally I agree with Mr Hydes comments about how financial institutions use the rule of 78 to their advantage Bar rowers beware And yes simple rules of thumb would surely help young people plan for their finan cial future If only more of them would use and follow them P C Georgetown Canadians getting To the Editor Youre getting ripped off And not just by the GST As came to an end news reports focused on the hated GST the threat of war in the Gulf a governmentsponsored reces sion cuts to the CBC and countless rips in the fabric of the nation Few people noticed that the Conservatives had used their majority in the House of Com mons to shut off debate and sneak through a law to sell Once this law passes the Tory stacked senate our national publicly- owned energy company will be gone It wont reappear after the next election PetroCanada will Hospital staff receives praise To the Editor I am writing as a relatively new resident to the Georgetown area Two weeks ago I had a medical emergency and had to go to Georgetown District Memorial Hospital for treatment lm mediately First 1 was greeted at the Emergency by a staff of doctors and nurses who to say the least were excellent Within minutes they had me ex medicated and in a relaxed frame of mind I was then admitted to the unit of the hospital where again I can not praise the services enough I have had a heart problem in the past and have been to Toronto hospitals where I will say I had very good care But coming to a small town you tend to hear horror stories of small town treatment I have nothing but praise for the service I received by nurses and doctors alike 1 felt a personal touch that I dont think you can get in a large city hospital I felt like a person and not just a patient in a bed Special thanks must go to the nurses and a very special thanks must go to the Lab Techni who took and blood tests daily As you might know when that lab technician walks in the room most patients groan as they know what she is going to do This lady had a way of putting you right at ease with a joke and always a smile and conversation Before you knew it she had done what she came to do and you were not the least bit scared My thanks again to all the staff M Georgetown be gone forever Canadians are losing a vital energy policy tool No future na tional government will be able to use PetroCanada to help keep foreign oil companies honest by being the one company we can trust not to gouge us at the gas pumps can never be used to help keep energy pro fits in Canada for reinvestment here And can never be used to help move us towards a greener energy future by taking the lead in ac tively promoting conservation and alternative energy sources even such modest steps as col lecting recycling and selling us ed engine oil help tremendously Canadians will also lose billions of dollars on the sale A Calgary investment dealer appearing before a House of Commons Com studying the bill agreed absolutely that the people of Canada are going to take a bath on the sale the only question is how deep is the tub So I tried to make changes to the law to guarantee that the sale would at least have recovered for Cana dian taxpayers the billion theyve invested in Petro Canada But these changes were defeated by both the vative and Liberal members of the committee studying the bill Remember that the next time you shell out GST for a coffee and a newspaper Sincerely Ross Harvey M New Democrat Energy Critic Our democratic process Editors note The following letter was released to the Halton HIUs Herald for publication Mr JohnWelham 10 Peterborough Ont K9J6Y2 Dear Mr This is in response to your let ter to the editor of my newspaper the Halton Hills Herald in which you ask me and my fellow Cana dians to join you in impeaching Brian under the Criminal Code of Canada My immediate response was Good heavens doesnt the man understand the democratic pro cesses of this country So I ask you do you understand That the Mulroney govern ment was elected by your fellow citizens m a free democratic pro cess with a majority in parlla that he may use as he sees fit the bounds of our laws That our cherished right is to let Mr Mulroney know what we think of his performance at elec tion time I dont know you Mr but there are things I know and things I sense I know that you have not explained at all how the sections of the Criminal Code that you quote apply to this situation and to do so property would take a volume of wellresearched documentation I sense that your claim to be a nonpolitical group is untrue you dont agree with Mr politics because they dont agree with your own and that is the nub of the pro blem Hang Mr Welham election time coming will give you the opportunity to get out and work for the candidate of your choice or perhaps run for of fice yourself to see if your fellow Canadians agree with your politics This is our democratic process Neil Mackinnon Georgetown Peace Please For years weve kept peace But that will all change All because of a man Named Saddam Hussein He took over Kuwait For his very own So to the Persian Gulf All our airships have flown They took all our guns Other war weapons too So now all our men Are there f for you Over a bit of oil Our men might die Leaving women and children At home to cry The vision of death Is really quite clear A moment of silence To abolish our fears We pray to our Lord To answer our pleas Our message to you is Not war peace please By Caroling Page age and Jade age 13 Centennial Middle School Feminists questioned Dear Editor I respect and appreciate the ef forts of sincere feminists in this country who are committed to br ing about equality for women However I have to point out that under the banner of womens rights both the Ontario govern and some lobby organiza tions are pursuing a radical anti life pro homosexual agenda which is in my opinion not shared by the majority of the women in this country By jumping on the bandwagon and repeating the slogans of any feminist group without serious consideration Canadian feminists risk contributing to the disintegration of the family and the traditional values without proposing any replacements for these In a more socialist society where smaller institutions are wiped out all citizens would more and more be equally deprived of their rights by the state in an scenario Do not take my word for it The following are quotes from major feminists in the U S The simple fact is that every woman must be willing to be identified as a lesbian to be fully feminist National NOW Times Jan 1988 In order to raise children with equality we must take them away from families and com raise them May Jo Bane assistant professor of education at College and associate director of the schools Center for Research on Women The most merciful thing a large family can do to one of its infant members is to kill it Margaret Sanger founder of Planned Parenthood in Women and the New Race p By manipulating and exploiting Americans natural love for equality these radical feminists have succeeded in gaining a of support for a totally bizarre moral code Will sincere Canadian feminists con tinue to follow on the same path Sincerely Giuseppe Gori Executive Vice President Family Coalition Party of Ontario Giving away cards Dear Editor I have hundreds of old greeting cards anniversary birthday valentine Mothers Day Fathers Day etc these of course have been sent over a course of years I was wondering if any of your readers know of any organization that will take them off my hands as I feel guilty in tossing them into the garbage And as they are not recyclable as far as I know I will have to do just that Hoping your readers can be of some assistance if they want them they can pick them up at my home between a m and 12 noon only Thankyou sincerely Joseph Stamp Georgetown Write us a letter The Herald wants to hear from you If you have an opinion you want to express or a comment to make send us a letter or drop by the office address is Guelph St Georgetown Ont 3Z6 All letters must be signed Please include your address and telephone number for verification