Website owner: James Miller
A $100 is worth more than $100. It is worth $100 plus all the accumulated interest it can generate over the course of your life. If you spend $100 on a trip to the beach the trip has really cost you more than $100. It has also cost you all the interest that $100 would have generated over your lifetime. If you were 30 years old when you went to the beach and lived to the age of 80 and assume that the $100 accumulated interest at a constant rate of 6% per year then the $100 would have grown to the amount of $1842 by the time of your death. If it were $1000 you spent at the beach instead of $100 then that $1000 would have grown to an amount of $18420 by the time of your death. May 1991
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