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

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.