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 Subject: Money and Interest Rates Category: Business and Money > Finance Asked by: automata-ga List Price: \$20.00 Posted: 15 Jun 2003 10:30 PDT Expires: 15 Jul 2003 10:30 PDT Question ID: 217620
 ```I have consumated business with Google Researchers in the past and am always satisfied. This question is simple but requires historical interest rates. Question: What would be the value of \$29.00 today, or to make it simple,at the end of 2002, if we could compound the \$29.00 each year,starting in January 1,1972 to 12/31/2002. I would like to use an average savings bank interest rate for each year,and I would like it compounded,from year to year.```
 ```Dear automata, Thanks for your question. First, let me request that if any of the following is unclear or if you require any further research – please don’t hesitate to ask me for a clarification. You requested the value of \$29 “invested” on January 1, 1972 and compounded annually. I extracted end-of-year annual interest rates from – http://www.federalreserve.gov/releases/h15/data/a/prime.txt These are bank prime rates. Let me know if you would like to run the calculation using a different interest rate – you can see the menu of interest rates for which the Federal Reserve maintains historical data at – http://www.federalreserve.gov/releases/h15/data.htm The calculation is as follows – Year Interest Rate Compound Value 1/1/72 - \$29.00 1972 5.25 \$30.52 1973 8.03 \$32.97 1974 10.81 \$36.54 1975 7.86 \$39.41 1976 6.84 \$42.11 1977 6.83 \$44.98 1978 9.06 \$49.06 1979 12.67 \$55.27 1980 15.26 \$63.71 1981 18.87 \$75.73 1982 14.85 \$86.97 1983 10.79 \$96.36 1984 12.04 \$107.96 1985 9.93 \$118.68 1986 8.33 \$128.57 1987 8.21 \$139.12 1988 9.32 \$152.09 1989 10.87 \$168.62 1990 10.01 \$185.50 1991 8.46 \$201.19 1992 6.25 \$213.77 1993 6 \$226.59 1994 7.15 \$242.79 1995 8.83 \$264.23 1996 8.27 \$286.08 1997 8.44 \$310.23 1998 8.35 \$336.13 1999 8 \$363.02 2000 9.23 \$396.53 2001 6.91 \$423.93 2002 4.67 \$443.73 So, the final answer is \$443.73. I hope this response adequately addresses your request. Please let me know if you are in need of additional information concerning this query. Thanks, ragingacademic-ga```
 automata-ga rated this answer: ```Absolutely perfect. I thank you very much, as you saved me a great deal of time, and finalized the task with exact financial numbers. I am appreciative and thanks for good work.```