some more playing around with numbers
Bibbs, Christopher
Christopher_Bibbs@compuware.com
Thu, 20 Apr 2000 12:49:08 -0400
$100 a year on software? Assuming you only count things that have Open
Source counter parts (i.e. throw out commercial games, Turbo Tax, high end
design packages) the total needs to be a lot lower. I'd guess the average
person only spends $20 or so a year on things that could have been gained
via Open Source except when they get "free software" with the purchase of a
new machine.
Christopher Bibbs
-----Original Message-----
From: Marcel Kunath [mailto:kunathma@pilot.msu.edu]
Sent: Thursday, April 20, 2000 12:37 PM
To: linux-user@egr.msu.edu
Subject: some more playing around with numbers
Was just reading my daily dose of "Linux Is The Best Thing Since Canned
Beer"
articles and I came up with a little idea to once again make a point. It's
the
one where it hurts the most, the wallet.
Let's do some data plays:
You are a single average consumer. You purchase a new computer every 5
years.
You spend an average of 100 dollars a year on proprietory software, directly
or
indirectly(hidden costs as advertising, rebate checks etc.). Let's account
this
over a life period of 50 years with a investment value of 14.4% a year in
the
stock market. If you used Linux and free software you could easily invest
that
money into a nice mutual fund. Roth IRAs' capital gains are tax exempt at
the
time of retirement. Contact your investment advisor for more information.
Note: The average stock investment has outperformed 14.4% but we take 14.4%
because its perfectly fitting the Einstein 72-Rule and we all know Einstein
was
pretty smart.
72-Rule:
If you have $10,000 in a savings account at a bank, earning you 2.5%
Divide 2.5% into 72= 28.8 years to double your money
72 / 14.4% = 5 years to double your money
Invest 100 dollars a year by savings from open source software usage:
Year Investment Investment
(14.4%) (19.0%)
1 $100.00 $100.00
2 $214.40 $219.00
3 $345.27 $360.61
4 $494.99 $529.13
5 $666.27 $729.66
6 $862.22 $968.30
7 $1,086.37 $1,252.27
8 $1,342.81 $1,590.20
9 $1,636.18 $1,992.34
10 $1,971.79 $2,470.89
11 $2,355.72 $3,040.35
12 $2,794.95 $3,718.02
13 $3,297.42 $4,524.45
14 $3,872.25 $5,484.09
15 $4,529.85 $6,626.07
16 $5,282.15 $7,985.02
17 $6,142.78 $9,602.18
18 $7,127.34 $11,526.59
19 $8,253.68 $13,816.64
20 $9,542.21 $16,541.80
21 $11,016.29 $19,784.74
22 $12,702.63 $23,643.85
23 $14,631.81 $28,236.18
24 $16,838.79 $33,701.05
25 $19,363.58 $40,204.25
26 $22,251.93 $47,943.06
27 $25,556.21 $57,152.24
28 $29,336.31 $68,111.16
29 $33,660.73 $81,152.28
30 $38,607.88 $96,671.22
31 $44,267.42 $115,138.75
32 $50,741.92 $137,115.11
33 $58,148.76 $163,266.98
34 $66,622.18 $194,387.71
35 $76,315.78 $231,421.37
36 $87,405.25 $275,491.43
37 $100,091.60 $327,934.81
38 $114,604.79 $390,342.42
39 $131,207.88 $464,607.48
40 $150,201.82 $552,982.90
41 $171,930.88 $658,149.65
42 $196,788.93 $783,298.08
43 $225,226.53 $932,224.72
44 $257,759.15 $1,109,447.41
45 $294,976.47 $1,320,342.42
46 $337,553.08 $1,571,307.48
47 $386,260.73 $1,869,955.90
48 $441,982.27 $2,225,347.53
49 $505,727.72 $2,648,263.56
50 $578,652.51 $3,151,533.63
Lots of savings and just because you could use open source software!!!!
The data is not inflation adjusted.
Marcel Kunath
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