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

_______________________________________________
linux-user mailing list
linux-user@egr.msu.edu
http://www.egr.msu.edu/mailman/listinfo/linux-user