Posts Tagged ‘explination’
Need explination of this thing..?
May 29th, 2010 | 
Author: 
In Peter Lynch’s book “learn to earn” he talks about a bond paying 8% interest on 10K investment. (8K Intrest). then he says inflation is 4%. He calculates that you lose almost 1,300 of the interest (I think) to inflation. therefore he says that your orginal 10K investment is worth 6,648 after 10 yrs of 4% inflation. How is it that the investment ends up at 6,648 after 10 yrs of inflation?
Posted in 
Tags: 