Friday, April 13, 2012

Compounding Time

I was glad to find out that the boys remembered the concept of compounded interest. But we hadn't discussed compounded time...

We went to visit the Pearl Harbor Memorial. I had read that it got very crowded so we went very early. Got up at 7am (yes during our vacation) and made it to Pearl Harbor at 8am - just in time to sneak into the very first tour of the day. By 9:30am we were ready to go kitesurfing :-).

What would have happened had we woken up as little as 15 minutes later? There would have been a bit more of a line at the coffee shop, so 15 minutes would have become 20. There would have been more traffic in Honolulu, so 20 minutes would have become 35. There would have been a longer line at the ticket counter, so 35 minutes would have become 45 minutes. And the 8am and 9am tours would have been sold out, so 45 minutes would have become 2 hours. To recap: waking up 15 minutes later would have resulted in 2 less hours on the beach.

Just las week I had a meeting in Palo Alto at 8am. I knew that to avoid rush hour traffic I had to leave my house by 6:45am - which I did. I got to Palo Alto in 45 minutes with time to spare before my meeting. Another meeting participant showed up half an hour late. He said traffic was terrible. He had left his home in San Francisco at 7am and it had taken him an hour and half to get to Palo Alto.

BTW: this morning Nico asked me whether I could pay him his allowance daily instead of weekly. He definitely understood compounding!

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