Since percent growth is exponential growth, you have to use an exponential model to compute the value in 10 years.

Amount = Principle(1 + periodic rate)^period of time

A = P(1.07)^10

A ~= 1.97P

But remember that each year you would pay a percentage on your capital gains as taxes, so that is gonna eat away another portion!!

The worse part is that with 8% inflation, and bank timed deposits like CDs paying 3-5%, people are actually losing 3-5% of their money by saving!!!

Inflation penalizes savers.

Geez, that inflation calculator IS depressing. I took $100 in 1913 when the Federal Reserve cartel took over, and the calculator gave an inflated equivalent $2,036.36 for the year 2006! That’s an average inflation rate of over 8% annually.

There are some analysts that have computed current inflation rates between 8% and 11% annually! That means price’s double in 7-9 years!

Gotta get that greenhouse SOON!

]]>Nice post! I think the answer to your question is 25% right?

I love/hate to go to this govt. inflation calculator to be reminded that I’m earning exactly the same in purchasing power (in my capacity as a music teacher) that I did as a recent grad back in 1980.

For Now,

John ]]>