the end of 1 year we’d have Our original dollar (Mr. Blue) The dollar Mr. Blue made (Mr. Green) The 25 cents Mr. Green made (Mr. Red) Giving us a total of $2.25. We gained $1.25 from our initial dollar, even better than doubling! Let’s turn our return into a formula. The growth of two half-periods of 50% is: growth = (1 + 100%/2)2 = 2.25
