2 ms·
> If you can put $10 in an account at 3% interest and wait 200 years, you can take $3693.56 out. Yes, but how much is that $3693.56 worth in 200-years-ago doll
by jdmichal 12y ago
> If you can put $10 in an account at 3% interest and wait 200 years, you can take $3693.56 out.
Yes, but how much is that $3693.56 worth in 200-years-ago dollars? Chances are, the number is less than $10.
- logfromblammo 12y agoIn 200 years, other things could also happen. - US/Federal Reserve Dollars could be obsoleted in favor of a different currency. Your account might automatically be converted to a non-interest bearing account in a different unit of account. - Your account could be flagged as inactive and plundered by the banking institution or the governing authority. - The currency could be inflated much faster than your fixed rate of return. Your $3693.56 could buy one ramen noodle--not one packet of noodles, one noodle. - The banking institution could cease to exist. If there is a successor institution for your account at all, you might not know what it is. But the point is that if you just take your $10 bill into the future with you, you would only have one worthless 200-year-old $10 note, of interest only to curators and collectors. You wouldn't have the not-even-$10-worth of era-appropriate currency.