Wednesday, November 26, 2008

Saving interest vs Inflation

I am constantly working on to produce something that benefit to my readers.

In my previous post about 'how much your money worth', I explained the relationship between savings interest VS inflation. I don't think I do well in explaining my argument in words. And therefore, I decided to transfer my words into figures. I hope my readers could benefit more.

I've made a few assumptions, purely for easy illustration purpose,
1. Savings account interest remain constant @ 1%/year for 25 years ( bank don't give such high interest right? for easy illustration la)
2. Inflation remains @ 3%/year for 25 years ( Again, inflation should be more than that right?Again, for the ease of illustration la.)
3. This could be a super duper simple illustration. Therefore, all variables are not considered.

Okay, here goes the chart (in jpeg)

So, I have done my part by showing a simple illustration. Now, it is your part to do something with your $.

To be continued...

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