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BBtB · 06-06-2003, 04:02 PM

If you are planning on leaving that 4K that you will have left alone for 3 years then defintly do not leave it in the bank. Here is why.. Bank intrest rates are about 2% where as rates of inflatation are around 5-6% so it will go something like this..

After one year you will have $4080 in the bank.

2. 4162

3.4245

Now at first glance it looks like you gained $245 HOWEVER at a 5% intrest rate...

1. 4200

2. 4410

3. 4631

That means in three years it will take $4631 to buy what it takes $4000 today. So in 3 years you will have lost $386 (4631-4245) in the value of your money depricating. Or to answer your main question. In 3 year what you have in the bank will be worth the equivelant of $3667 today.

06-06-2003, 04:02 PM	#4 (permalink)
BBtB ClerkMan! Location: Tulsa, Ok.	If you are planning on leaving that 4K that you will have left alone for 3 years then defintly do not leave it in the bank. Here is why.. Bank intrest rates are about 2% where as rates of inflatation are around 5-6% so it will go something like this.. After one year you will have $4080 in the bank. 2. 4162 3.4245 Now at first glance it looks like you gained $245 HOWEVER at a 5% intrest rate... 1. 4200 2. 4410 3. 4631 That means in three years it will take $4631 to buy what it takes $4000 today. So in 3 years you will have lost $386 (4631-4245) in the value of your money depricating. Or to answer your main question. In 3 year what you have in the bank will be worth the equivelant of $3667 today. __________________ Meridae'n once played "death" at a game of chess that lasted for over two years. He finally beat death in a best 34 out of 67 match. At that time he could ask for any one thing and he could wish for the hope of all mankind... he looked death right in the eye and said ... "I would like about three fiddy"