Website owner:  James Miller

A $100 is worth more than $100 --- it is worth $100 plus all the interest it can generate over your lifetime

   A $100 is worth more than $100.  It is worth $100 plus all the 
   accumulated interest it can generate over the course of your 
   life.  If you spend $100 on a trip to the beach the trip has 
   really cost you more than $100.  It has also cost you all the 
   interest that $100 would have generated over your lifetime.  If 
   you were 30 years old when you went to the beach and lived to 
   the age of 80 and assume that the $100 accumulated interest at 
   a constant rate of 6% per year then the $100 would have grown 
   to the amount of $1842 by the time of your death.  If it were 
   $1000 you spent at the beach instead of $100 then that $1000 
   would have grown to an amount of $18420 by the time of your 
   death. 


   May 1991