if a person inherited 13.Deuutsch Marks in 1950 and it sat in a german bank untill now how would one callculat
if 13.German DM ssat in a german account since 1950 how would you calculate todays value?
- Anonymous1 decade agoFavorite Answer
If you use a spreadsheet, you can use the FV (Future Value) function. The difficulty is the changing interest rate over the years. However, you can still get an idea of how much the money will be now.
Let us assume a flat interest rate of 3% paid, per year, for the entire period - even if it is impossible, and including compound interest. This will result in a current value of about 22,640 Marks.
Bank fees / charges may have reduced this amount by now. Also, the account is more than likely in an "inactive" status. However, there may be local laws and regulations, preventing charges on a suspended / inactive account, so best first to find out:
>> if charges are being added to an inactive account
>> if an inactive account still attracts interest.
You may just be in luck!
- 1 decade ago
Now, since you didn't really ask advice on whether you should go collect it let's take it in the hypothetical:
13 DM earning, let's say 4% interest, compounded monthly (cheap Germans) for 56 years = 121.66 DM
Since the Germans negotiated unlimited exchange periods with the Euro, that money is still good. 121.66 DM = 121.66 Euros = US$ 147.59 (today, at least)
Not bad. As Benjamin Franklin once said, compound interest is the greatest invention of mankind.
- Anonymous1 decade ago
You owe a lot more to the bank because the administrative charges,fees and taxes all piled up since 56 years are much much more,so my advice is that dont go to the bank for claiming that money,forget it .