There is this cartoon Futurama that tells a story of a guy named Fry. The character was accidentally frozen on December 31, 1999 and wakes up back to life on December 31, 2999. In season 1 episode 6 Fry visits his old bank. The teller informs him that he had on his account 93 cents in 1999. However, with an average yearly interest of 2.25% over the period of 1000 years it gives $4.3 billion.
Read about compound interest and use Julia to answer a few questions.
Is Fry really a billionaire?
According to this page (careful it’s in Polish) the inflation in Poland over the period 2020-2024 was: 3.4%, 5.1%, 14.4%, 11.4%, and 3.6%. If on December 31, 2019 my monthly salary was $10,000 (I wished) then how much I would have to earn in January 2025 to be able to buy the same amount of goods like in 2019?
Imagine that on January 1, 2020 I opened a bank deposit for 5 years with a yearly interest rate of 6%. Given the inflation rates from the question 2 would I make any real profit on January 1, 2025?