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

[SpyWizard]

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.

actually compounding works more to your advantage, doubling every 7 yrs..

so $40 invested = $80 after 14 yrs..


just examples and not exact, but you get the idea..

 

[Spartacus]

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..

use 7.5%
I think that's closer to actual for that period

 

[Spartacus]

the guy owes you 80 bucks give or take

 

[-SD-]

use 7.5%
I think that's closer to actual for that period

this is a reasonable figure. this shit isnt rocket science, just pick a rate and compund it yearly.

 

[Becoming]

actually compounding works more to your advantage, doubling every 7 yrs..

so $40 invested = $80 after 14 yrs..


just examples and not exact, but you get the idea..

Yeah, I figure it should be compounded it would end up somewehre in the 70-100 dollars range. I just need a rate and how often to compound

use 7.5%
I think that's closer to actual for that period

Was that for a savings bond or a savings accout or what? How often to compound? I am only asking cause I want to tell him how I figured it.

This is weird I know, but the dude insists - I just want a logical way of figuring it so that he can pay me and move on (I said just pay me the 40 but he wouldn't hear of it)

 

[sawastea]

After inflation on US Treasury's, you now owe $52.36

 

[Becoming]

this is a reasonable figure. this shit isnt rocket science, just pick a rate and compund it yearly.

cool. I will use that - what should I say the rate is from though?

Dude I approach everything like it is rocket science. Funny story - after college me I was doing some research and me and a buddy were at a bar... Some girls we met asked us what we did - so we said "genetic research" (the truth)

The girl laughed and said "that is BS! Why not just say "I am a rocket scientist!" "

(how the fuck do you quote a quote in a quote anyway? LOL

 

[Becoming]

After inflation on US Treasury's, you now owe $52.36

Seriously - the govt is going to want their piece of this...

Wait till hillary is in office...

 

[Spartacus]

federal funds rates 1994

1994-01-01 3.05
1994-02-01 3.25
1994-03-01 3.34
1994-04-01 3.56
1994-05-01 4.01
1994-06-01 4.25
1994-07-01 4.26
1994-08-01 4.47
1994-09-01 4.73
1994-10-01 4.76
1994-11-01 5.29
1994-12-01 5.45

 

[Spartacus]

Open market operations--purchases and sales of U.S. Treasury and federal agency securities--are the Federal Reserve's principal tool for implementing monetary policy. The short-term objective for open market operations is specified by the Federal Open Market Committee (FOMC). This objective can be a desired quantity of reserves or a desired price (the federal funds rate). The federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight.
The Federal Reserve's objective for open market operations has varied over the years. During the 1980s, the focus gradually shifted toward attaining a specified level of the federal funds rate, a process that was largely complete by the end of the decade. Beginning in 1994, the FOMC began announcing changes in its policy stance, and in 1995 it began to explicitly state its target level for the federal funds rate. Since February 2000, the statement issued by the FOMC shortly after each of its meetings usually has included the Committee's assessment of the risks to the attainment of its long-run goals of price stability and sustainable economic growth.