Okay you finance geniuses - here is a question for you...

[Becoming]

Say I had bought a treasury bond back in june 1994 for 40 bucks

What would it be worth today at the actual rate it was in 1994? (use the avg year rate if not the june rate, assume a 10 year bond that that I just left in? or a 20 year?)

Quarterly interest paid on those right?

What about at todays rates? (wasn't that an all time high or something?)

a small bit of karma to ya for helping me with this.

 

[yonkers weights]

They usually don't hit there value till about 15-18 years in.
I am kind of confused with this one. I am banker too...

 

[Becoming]

They usually don't hit there value till about 15-18 years in.
I am kind of confused with this one. I am banker too...

maybe it would be better if you could explain it to me... (if I knew what the hell I was talking about I would have figured it out)

Here is the situation - a guy owes me 40 bucks from back then and wants to pay me - he also wants to include interest. What would have been the most appropriate secure investment vehicles (not some stock that went nuts obviously and not something I could have taken a loss on either - more like a savings bond or a savings account or similar etc) that would have yielded the best returns, and what would the investment be worth today? maybe a bond isn't the best idea...

considering the randomly decided number of years - we might have to bend the rules a bit.

like I was saying - what would the same be worth at todays rates (because I think stuff like this was peaking back then and might be a little over the average return because of it)

 

[yonkers weights]

Dude - what is your questions? Sorry a lot going on in this. Not bust balls just confused about what you are really looking for.
You buy a $50 bond for $25. In about 15-18 years the bond hits it $50 payout and you can cash it in.

 

[Becoming]

Dude - what is your questions? Sorry a lot going on in this. Not bust balls just confused about what you are really looking for.
You buy a $50 bond for $25. In about 15-18 years the bond hits it $50 payout and you can cash it in.

The guy owes me 40 bucks.

So hypothetically I invested 40 bucks in 1994-he insists (however you think is most appropriate). What would it be worth today?

how would you solve the issue?

 

[-SD-]

The guy owes me 40 bucks.

So hypothetically I invested 40 bucks in 1994-he insists (however you think is most appropriate). What would it be worth today?

how would you solve the issue?

Find the average annual return rate for a 15 year t-bond. uses that rate to apply to the annual compounding of $40 starting in 1994 until 2007. Or, if you know when he was supposed to pay you back, i.e. within 6 months, 1 month, from the borrow date in 1994 then you could use that for compounding. So if yo ugave him the cash in jan 1994 and he was supposed to pay you back in feb 1994 then the compounding is monthly. If you want the most money from him convince him to compound as frequently as possible (monthly instead of yearly, etc)

 

[sawastea]

Your US treasury bonds are paying QUATERLY? WTFBBQ

 

[SpyWizard]

if it is a personal loan, just charge him 10%.. annually..

$40 * 10% = $4 * 13 yrs = $52 (simple interest not compound) = $92 owed..

simple but we can make it more complex if you like..

 

[Becoming]

Find the average annual return rate for a 15 year t-bond. uses that rate to apply to the annual compounding of $40 starting in 1994 until 2007.

I tried to do look that up but got confused. It gave all these different kinds of rates for god knows what. I didn't even know if I was looking at the right thing. I know how to calculate the final result, but I don't know what numbers to put in as far as rate. (Dude I am a science guy)

Your US treasury bonds are paying QUATERLY? WTFBBQ

LOL. I specifically stated that I didn't know what the fuck was going on. Dude help me out here. I won't give you any karma though cause god knows you have a shit load stashed in sheep rectums somewhere.

 

[Becoming]

if it is a personal loan, just charge him 10%.. annually..

$40 * 10% = $4 * 13 yrs = $52 (simple interest not compound) = $92 owed..

simple but we can make it more complex if you like..

i just was trying to use something more realistic than a flate 10% (why I came up with the whole bank scenario - which was probably ill advised considering I know jack about it)

BTW holy shit does interest grow. I should have invested the money from all those kegs and parties and drugs and cds and shit.

All the condoms were a good investment though.