Mental Math: Years to Double an Investment

Sharing a very simple, but handy mental math rule that was mentioned in quite a few of our MBA classes, such as Investment Styles and Strategies, Designing Financial Models that Work and others:

If you want to quickly ballpark the # of years it will approximately take for an investment to double, then just divide 72 by the annual growth rate. For example, if your investment grows 7% a year, it will take slightly more than 10 years for it to double (72/7). But if it grows 36% a year, it will only take about two years to double (72/36). 

You can read more about this “Rule of 72” on Wikipedia. Now, you now you can come across as a math genius without much effort 😉

Why Berkeley-Haas

People sometimes ask for my reasons behind choosing Berkeley-Haas among other schools.

Berkeley. Is MBA worth it

Shortly, these are the reasons:

  • Focus on technology and entrepreneurship.
  • Location, location, location. Not only because it is sunny California, but because being close to Silicon Valley opens many career opportunities that are highly germane to my vision.
  • It is a part of a larger top university.
    • For instance, I do not think I would enjoy going to LBS or INSEAD as much. These are great business schools, but these business schools are not part of larger universities.
    • There is something special about being on campus with ~30 thousand smartest students from all over the world who also major in fields other than business.
    • For example, UC Berkeley is currently top 1-2 in Computer Science, top 1-5 in Physics and top 1-3 in Mechanical Engineering.
  • Believe it or not, but the I find the defining principles personally appealing.
  • Great brand and good rankings do not hurt either
    • In particular, I liked the fact that Haas ranks well on the “Student evaluation” axis, it is #2 in “Students’ evaluation of career services” and quite high overall “Student rating of the program (out of 5)”, 4.56, according to The Economist 2013 rankings.
  • I really want to add “people” to this list of Berkley-Haas strengths, but this would be probably unfair as I cannot compare to other schools as I could not know it for sure before starting the program.

The list could go on and on and on, but these are probably the main ones top-of-mind. Of course, there are drawbacks as well, but no one schools is perfect.

Let me know what you think!

How I (did not?) beat the GMAT

Disclaimer

In this post I want to share my experience of preparation to GMAT test and advice on some “DOs and DON’Ts”. It will only be interesting for those who want to pass it and already know what GMAT is, what it is for, and how it is generally structured. Others will probably derive no benefit from reading this article.

So, as we assumed that you have a basic understanding of how test works (if you do not, I would recommend that you read the Wiki article about it), let us skip all the introductory information about the test and dive right into the preparation, my experience, and advice.

gmat test

 

Full disclosure

I think, it would be fair to start with my own result to manage everybody’s expectations. Who knows, maybe some of you will leave after this part…

I took the test twice and scored exactly the same, 710. Q49 and V38 — first time and Q48 and V39 — second time. It is the 92th percentile. In other words, 92% of those who took the test did worse while 8% of them did better . Ironically, I received 6.0 out of maximum 6.0 for Analytical Writing Assessment, GMAT section I almost did not prepare for.

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Math brainteasers from GMAT, 1

So, I also started preparing for this awesome GMAT exam. And now Saturday and Sunday mornings are devoted to studying which I haven’t been doing for years.So far, I try to learn concepts from Divisibility, Primes, Odds & Evens, Consecutive Integers and other amusing topics.

This is the first and test post in which I’d like to share few exercises that make me break some sweat. Let’s see if anybody is going to be interested. If yes, I might continue the series.

So, how about solving these 5 exercises?

 

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