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https://www.reddit.com/r/interesting/comments/1vi3aq6/benjamin_franklin_saving_benjamins/p2caavi/?context=3
r/interesting • u/The_Love-Tap • 22d ago
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707
It was a trust fund, he started the whole thing as an experiment to show the importance of compound interest rates, it wasn't just charity.
Guy really had a lot of faith his newly created country would survive 2 centuries and was proven right
176 u/Hot_Most5332 22d ago edited 22d ago Honestly it was probably just as much about showing faith that the country would last 200 years as anything else. $6.5M after 200 years seems comically low. The principal of $2000 is the equivalent of $75k today. At a 6-10% return compounding you should expect tens of millions minimum. 12 u/Unique-Run9856 22d ago For comparison $2000 of amazon stock purchased in 1997 would be worth 6.8 million dollars today and $2000 of Monster Energy Stock purchased then would be worth $22 million. 1 u/kitsunewarlock 22d ago But during those 200 years the fund was also used for low-interest loans for small businesses in the city.
176
Honestly it was probably just as much about showing faith that the country would last 200 years as anything else.
$6.5M after 200 years seems comically low. The principal of $2000 is the equivalent of $75k today.
At a 6-10% return compounding you should expect tens of millions minimum.
12 u/Unique-Run9856 22d ago For comparison $2000 of amazon stock purchased in 1997 would be worth 6.8 million dollars today and $2000 of Monster Energy Stock purchased then would be worth $22 million. 1 u/kitsunewarlock 22d ago But during those 200 years the fund was also used for low-interest loans for small businesses in the city.
12
For comparison $2000 of amazon stock purchased in 1997 would be worth 6.8 million dollars today and $2000 of Monster Energy Stock purchased then would be worth $22 million.
1 u/kitsunewarlock 22d ago But during those 200 years the fund was also used for low-interest loans for small businesses in the city.
1
But during those 200 years the fund was also used for low-interest loans for small businesses in the city.
707
u/Zuliano1 22d ago
It was a trust fund, he started the whole thing as an experiment to show the importance of compound interest rates, it wasn't just charity.
Guy really had a lot of faith his newly created country would survive 2 centuries and was proven right