💯Doubling the Investment
Scenario Overview
This scenario is based on the user making an investment and treating the borrowed amount as an investment as well.
If the invested X coins increase in value by certain percentages over the course of one year and double in value after one year:
Invested Coin Amount: 20,000 X Coin
Initial Coin Value: 1 X Coin = 1 USD = 20,000 USD
Borrowed Amount in Coins: 18,000 X Coin = 18,000 USD
X Coin increases in value at specific intervals and doubles in value after one year
Term: 12 months
Payment Plan and Remaining Debt Table
1
1.00
1,500
1,500
16,500
2
1.05946
1,500
1,589
15,000
3
1.12327
1,500
1,685
13,500
4
1.19153
1,500
1,787
12,000
5
1.26429
1,500
1,896
10,500
6
1.34173
1,500
2,013
9,000
7
1.42399
1,500
2,136
7,500
8
1.51124
1,500
2,267
6,000
9
1.60367
1,500
2,405
4,500
10
1.70146
1,500
2,552
3,000
11
1.80480
1,500
2,707
1,500
12
1.91387
1,500
2,871
0
Results
Coins Paid: Each month, 1,500 X Coin is paid, totaling 18,000 X Coin over 12 months.
Remaining Coin Amount: The debt in coins decreases each month, and by the 12th month, the remaining debt reaches zero.
Results After 12 Months
Initial Situation (Initial Investment and Debt)
Invested Coin Amount (Coins in the System): 20,000 X Coin (Initially worth 20,000 USD).
Borrowed Amount in Coins: 18,000 X Coin (Borrowed amount worth 18,000 USD).
Total Paid Amount: 18,000 X Coin / 26,408 USD (Total amount paid over 12 months).
After 12 Months (Coin Value Increases)
Coins in the System (Remaining 20,000 X Coin): When the value of X Coin increases to 2 USD:
20,000×2=40,000 USD
Value of Borrowed 18,000 X Coins: These coins were not used and have also appreciated in value, so they are now valued at 2 USD each:
18,000×2=36,000 USD
Total Coin Value (Remaining and Borrowed Coins): The combined value of the coins in the system and the borrowed coins is:
40,000+36,000=76,000 USD
Net Profit Calculation
Considering both the amount you paid and the increase in the value of the coins, your net profit is calculated as follows:
Total Coin Value (Coins in the System and Borrowed Coins): 76,000 USD
Total Amount Paid: 26,408 USD
Net Profit:
Net Profit=76,000 USD−26,408 USD=49,592 USD
Additional Earnings
The initial investment of 20,000 USD becomes 40,000 USD after one year, as the value of X Coin doubles. However, you also make an additional profit of 9,592 USD because your total return on investment is 49,592 USD.
The initial 20,000 USD investment in X Coin becomes 40,000 USD after 12 months.
The additional profit you make is 9,592 USD.
Conclusion:
In this scenario, after one year, your net profit is 49,592 USD. The value of your initial 20,000 USD investment in X Coin has increased due to the coin's price doubling. The profit of 9,592 USD is a result of this price increase. If the coin appreciates more than 2x, your profit will be even higher.
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