Consider the following problem.
Two trains are running on the same track. The only issue is they are running towards each other. It is apparent that they will collide at some point.
Now, there is a fly which is happily flying between the two trains. The problem is what is the total distance that the fly will be able to cover before its crushed.
The speed of Train 1 is 60 km/hr while the Train 2 is running at a speed of 40 km/hr. The distance between the two trains is 20 kms. The speed of the fly is 10 km/hr.
This appears to be a complicated problem. Is it?
What approach will you take to solve the problem?
…
As you now know, this problem can be solved using some basic school maths. Yes!
The formula to use is Distance = Speed * Time.
Do you remember this simple formula from school?
Go ahead and apply it to the problem.
However, to make you solve this problem is not the purpose of the post.
What if I tell you that this very formula has an important role to play in your investing decisions too?