power of compound interest

From: Stirling Reid

I don't know if this makes sense, but if your relatives invested one days pay 2000 years ago and received a real rate of return of 2% you would have a lot of money today.
This is 2% real ie on top of inflation, which has gone up and down over the years, in fact it was negative between 1810 AD and 1910 AD. Now 2% real per annum is not a high rate of return, but would return 158 x 10 to the power of 15 person days. ie 86,000 person years of wages for each of the 5 billion inhabitants of this world.

Any comments?

An interesting website for inflation from 1750-1998 is Research paper 99/20.
House of Commons Library.

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Reply: 1
From: Les .

G'day Stirling,

Mate, I didn't believe this could be so, so I just HAD to work it out for myself....

And, I got an answer almost DOUBLE your figure - and I thought I was being a little bit conservative.....

No wonder Einstein made his "8th wonder" comment.

A great post, Stirling...



- "Eschew Obfuscation" - ;^)
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