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math magician needed,, compounded interest from 400 years ago

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posted on Feb, 19 2011 @ 01:00 AM
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my family is an old one.. we go back over 400 years.

if we had deposited a single dollar in a Rothschild bank in Germany, 400 or so years ago.,

and left it there as we fled to Poland/Russia and then to USA..

how much compounded interest should the bank owe us...by today. if i tried to collect.

any takers??




posted on Feb, 19 2011 @ 01:37 AM
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reply to post by darrman
 


ahahah what is a dollar 400 years ago? If it was a gold coin then its worth its weight plus interest. then you have to factor in if they used interest 400 years ago or when it started and at what rates then judge accordingly comparing how much they borrowed. Not only to you need to be a math magician like you send you need to be historical correct lol. so if 1 gram of gold is worth 27 dollars today and a dollar used to be worth 1.50g lets say half is 13.5 bucks so 40 bucks and lets say interest rates are 5% so $299,033,351.25 i have to admit i cheated i used this web site www.moneychimp.com...
edit on 19-2-2011 by pcrobotwolf because: (no reason given)
put in 1.00 and in years put 400 and in interest put 5%
edit on 19-2-2011 by pcrobotwolf because: (no reason given)
if you do it by us gold standard of what a dollar used to be it comes out to $12,110,850,725.58
edit on 19-2-2011 by pcrobotwolf because: (no reason given)

edit on 19-2-2011 by pcrobotwolf because: hey man if you get the money i want my cut which is 5%
i want my cut so I'm expecting 5% in the mail lol this isn't free
edit on 19-2-2011 by pcrobotwolf because: (no reason given)



posted on Feb, 19 2011 @ 01:48 AM
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reply to post by darrman
 



how much compounded interest should the
bank owe us...by today. if i tried to collect.

Probably nothing. It's standard practice for inactive accounts to be seized after a number of years. Exact length of time is likely to vary from bank to bank, but I've personally had an account seized and closed after only three years of inactivity.



posted on Feb, 19 2011 @ 02:09 AM
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reply to post by pcrobotwolf
 


ok!! deal

when i collect..you get your bonus

lol
Thank You!



posted on Feb, 19 2011 @ 06:51 AM
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At 3% interest per annum

total = (amount x interest rate)^years
= (1 x .03)^400
= $1,364,23.71



posted on Feb, 20 2011 @ 07:39 AM
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reply to post by kwakakev
 


your forgetting to add interest once a year so in actuality the amount of money you make keeps growing. 1.00 at 3% interest would be 3 cents so next year would be 1.03 then what ever 3 percent of that is. this is called compound interest. and each year the amount grows bigger so that formula will not work. and you some how got it wrong because it came on to this 136,423.72
edit on 20-2-2011 by pcrobotwolf because: (no reason given)



posted on Feb, 20 2011 @ 08:57 AM
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reply to post by pcrobotwolf
 


It took me a bit to find the error, it was with me putting in the commas as I copied and pasted the answer from the calculator. When you try this as 4% PA it goes up to around $6M so I was expecting a number up in that region, just goes to show how much difference 1% can make. The value $136,423.72 is right at 3%.

The compounding interest is added when you power the interest rate at the compounding rate. The compounding rate has commonly been calculated yearly with the acronym PA (per annum). It can also be calculated monthly or even daily depending on the contract. It has been a while since I done this math and just going off the top of my head. Working with a principle amount of $1 made it easy and still got the same answer (disregarding my bad use of commas), but the common equation is:

Amount = Principle ( 1 + Interest) ^ Number of compounds
= 1 (1 + 0.03)^400
= $136,423.72

If however your interest was calculated daily at 3% PA, the daily interest rate is 3/365 = 0.000082% PD. The number of compounds is 400*365 + 100 (for leap years) = 146100

Amount = Principle ( 1 + Interest) ^ Number of compounds
= 1(1 + 000082)^142500
= $164,017.05

At about $18,000 it does make a bit of a difference if the interest is calculated daily or yearly due to the compounding effect.



posted on Feb, 21 2011 @ 03:47 AM
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reply to post by kwakakev
 


Actually i just used the formula and it works so sorry




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