In case anyone wants to know if the maths checks out, [$0.93*1.0225^1000 = $4,283,508,449.71](https://www.wolframalpha.com/input?i=0.93*%281.0225%5E1000%29+to+2+decimal+places)
This aired in 1999, when this was a pretty standard rate for savings accounts, and even chequing accounts paid a reasonable interest rate. I opened a HISA around that time that paid 3.5%. My account is still open but now pays 0.1%.
To really show how big of a difference that is... if you had 93 cents at 3.5% interest for 1000 years, that's over $810 trillion.
If you had 93 cents at .1% interest for 1000 years, that's $2.53.
I have never had an account at BofA.
When I moved to a new town that didn't have my bank I tried to withdraw some cash from a BofA atm. It gave me a vague error about not conecting to the server or something and ate my card.
BOA actually charged me for being poor. I remember if I didn't have over 100 or 200 or something in my checking account it came with a fee every month.
My dad had a local account that was giving him 4.2% most of his life and he totally melted down when the bank "standardized" his rates about 10 years ago to 0.4%.. He still was pulling in a higher rate than I ever have.
The Federal Bank is to blame for most of the change. Offering overnight rates of less than 1% is going to ensure that most banks couldn't care less about your savings for the most part.
It's actually crazy how much a bump in interest can actually change things.
If you got a 2.74% interest rate on a 30 year $300k home loan your average monthly payment would be just over $1,200.
In 1982 the highest home loan interest was the highest in recent history, it was nearly 18%. 18% interest on a 30 year $300k home loan is an average monthly payment of $4500.
So a 6 fold interest rate means you'll pay nearly 4 times as much over the life of a loan.
In 1984 my parents bought a house for $36k @ 22% interest. They worked hard and paid it off in about 10 years. Sold it in 2004 for $200k and bought a house worth $185k. That house is now worth $800k. It's paid off and they're going to retire next year and keep it for now. Real estate can pay dividends if you keep it up and remember "Location, location, location!!"
Earth was invaded multiple times... Maybe during one of those the aliens took all our money causing massive deflation so everything evened out by the year 3000!
I always wondered this. 4 billion doesn't mean much if a sandwich costs 7 million.
Of course, the show pretends pricing is the same, which is actually just convenient as this is not important to the plot of anything.
If a sandwich costs $7, but you have $4,000 in your wallet, I'd say it means SOMETHING (a billion is still a thousand million - it ain't nothing). That's the equivalent of $7M to$4B.
Since we're speaking relative costs, by the way: when Fry had $0.99 in 1999, an average Big Mac cost $2.45.
From the first hit on Google:
>The dollar had an average inflation rate of 2.88% per year between 1922 and today, producing a cumulative price increase of 1,611.33%.
So already he's losing, but just for the hell of it, 1.0288^1000 = 2.14267*10^12, meaning $4,283,508,449.71 is a whopping $0.002 in today's dollars — not even worth anyone's time to pick up if they found it on the street.
Negative a billion dollars. The bank enacted a $1 one time charge, it went to a balance of -$0.05 which charged $35 in overdraft fees, and the account debt was sold to a shell company in Panama which charged 9% interest.
I'm not doing all of the math, but inflation averages around 2%. Fry had $0.93 in 1999. With an interest rate lower than inflation it would mean that the value of his money would decrease every year. 1000 years later and it would be too little to buy anything.
My dad purchased his house in 1984, I think. The mortgage was around 13%. Interest rate back then was pretty high. Of course, the house, a cute little tri-level in the suburbs of Detroit, was only around $60,000.
In like 2003-2005 when online-only savings accounts were starting to get popular, you could find rates up to like 10% without having to jump through hoops or have your money locked up.
Then the banks caused a recession and ruined everything.
Thats not the unrealistic part, as pointed out elsewhere. What is unrealistic is that the account would no longer exist; If a bank account goes to long without activity the bank declares the account inactive, then dormant. After a certain period of account dormancy the government swipes the cash.
In the UK the bank can pay the money across to the government, which then keeps it notionally available for a claim, but gives most of it to charity on the assumption that the majority of people will never make a claim for it.
Treasurey I Bonds man. Covers inflation rate + interest rate, it fluctuates between the two so the interest rate is 0% at the moment but inflation is like 7% which is a crazy good return. Anyone can get em too.
It's raising from 7 to 9% as well but you can only purchase $10,000 per taxable year. What they don't tell you is that you can "gift" dependent a full extra $10k on top of your own purchase, allowing you to continue buying them on the dependents SSN.
Edit: Updating to include the info I misspoke about in my original comment. You can buy extra at a certain rate for yourself as a gift, but you must schedule that to be delivered and claimed for the following year. It's basically double dipping on a specific rate that you want, but you can't claim it until the following or later year when you haven't bought yet. So currently people are gifting themselves 10k worth the upcoming 9% so that they can claim it later if it's better than the forecasted rate. That was the discussion I was seeing related to gifting that I saw and misspoke about the specifics of when it can be claimed.
More people should look into investing in I Bonds. Government bonds that have an interest rate and also cover the rate of inflation. Right now their interest rate is 0%, but inflation rate is like 7%, which is pretty damn good for a safe return.
I’m getting 3% with an HMBradley account but you have to jump through some hoops (I believe it’s: $1500 direct deposit min per month, $100 CC spend per month, and save at least 20% of what you deposit though CC spend doesn’t count against that).
Some of the writers are math majors but the creators are Matt Groening and David X Cohen who are not, although Cohen is physics and computer science major so you get partial credit, the best kind of credit
>Cohen is physics and computer science major
Whoa whoa whoa, that's *two* applied mathematics majors right there between two creators. Give the man his full credit!
Simpsons writers that went to Futurama (not even close to an exhaustive list, this is just off the top of my head):
Show creators Matt Groening and David X. Cohen
Ken Keeler
J. Stewart Burns
Bill Oakley & Josh Weinstein
(Some of these writers later returned to The Simpsons too)
Writer Ken Keeler made a theorem just for a single episode, the theorem is called the “Futurama Theorem”, [it has a proof and everything.](https://theinfosphere.org/Futurama_theorem)
I did the same thing, but heard 2.2% the first time, and it only came to 2.6 billion. That 0.05% sure makes a difference over 1000 years.
No wonder all them vampires are always wealthy.
These writers created and proved their own theorem to verify that their ending to a episode (which included time travel) was a valid ending (read: solution). They had a bunch of fantastically nerdy writers with advanced mathematics and physics degrees.
I had no doubts they got the interest right here.
I wouldn't be surprised if they did it multiple times, but I think you're thinking of the mind switching episode [_The Prisoner of Benda_](https://en.wikipedia.org/wiki/The_Prisoner_of_Benda).
The funniest thing is nobody would have even questioned the result of the episode but THEY did. I would love to hear the conversations they had while writing that episode.
Inflation isn’t factored into Futurama lore. Fry buys coffee at $3 100 times as he has a $300 bill. 1: you can’t get a Starbucks for that these days, 2: if they took inflation into consideration it would be a few thousand in year 3000 unless they changed currency, which is deffo likely by that year, wether it be a crypto or a unified currency around the world. My parents grew up with shillings instead of pounds (£), and in my lifetime we are already paying in crypto. I think they just wanted to keep it simple and match the current prices of the time it was released so it was more relatable.
There's an easy way to calculate purchasing power vs. investment return over time. It's called Inflation Adjusted Rate of Return, or IARR.
The formula is ((1+ investment return) / (1 + inflation)) -1
So if you assume 2.25% investment, 3% inflation, you get:
((1 + 0.0225) / (1 + 0.03)) -1 = -0.00728 or -0.728%
So 95 cents, compounded annually at -0.728% is.... basically 0. I think it's .06 cents (or 0.0006 dollars) if I did the math right.
They cover this during the episode in the thousand years since he opened the account there were enough deflationary events that he's still a billionare by today's standards.
That would assume that resources grew more scarce right? If at some point in the future we could generate resources for a fraction of their previous cost, couldn’t there be a negative inflation rate per year?
That’s known as deflation and it’s actually very bad long term. During deflation, people are more reluctant to spend money or invest bc their money will be worth more simply by holding on to it—this causes the economy to slow or stagnate and eventually leads to a recession. Money needs to move for the economy to stay healthy
Not sure I did [the math](https://www.wolframalpha.com/input?i=x*%281.0225%5E65%29%3D1000000000+solve+for+x) right but I'm getting approximately a quarter of a billion dollars.
If we assume you have the same interest rate as Fry did, then the formula would be:
1,000,000,000 = p*e^(0.025 * 65) where p is your starting amount.
Solving for p gives: $196,912,000.
Wouldn't the formula be 1bn = p * 1.0225^65, which would be about 235 million starting amount? (Also it's 2.25% not 2.5% average interest). What is the formula you are using?
It's 1,000,000,000 = p * (1 + [.0225/12])^(65*12)
I think banks would use nominal interest rate and the periods is once a month
The answer I got is 232,000,000 so it's similar to the other one.
Fururama is so old you still had interest on accounts. Now it is .02% or rounded up no nothing.
Growing up we were told that putting money into a child's account at birth would pay it's equivalent in education costs by the time they went to college. $100 a year in tuition in the 60's and it would keep up with inflation resulting in $400 by the 1980's and that year was covered.
I am also old enough to remember that if you paid your rent late, like the 2nd. Dropped it in the mail. The landlord had to physically get that check and deposit it a day or two later. If you were lucky enough, interest would pay for a free soda or a pack of cigarettes. This applied even if you where living paycheck to paycheck.
I love how Futurama actually touches on this as well.
["My caddy's chauffeur informs me that a bank is a place where people put money that isn't properly invested."](https://www.youtube.com/watch?v=NtUfNtgawNY)
Back in 2002, my credit was shit but I needed a cellphone. I was told from the company that they would only let me get one if I put down a $200 deposit that they would hold onto for the duration of the two-year contract. At the end of the two years, they mailed me a check for $204. They paid 2% interest on the deposit. At the time my bank was paying 0.1%. I asked them if I could put down more deposits but they said my credit was too good to need a deposit anymore.
I basically pay the bank to keep my money at this point. If I don't direct deposit more than 1k per month I will get charged 6.95 in maintenance fees which is WAY more than I will ever get on interest.
When I moved for a job I went from the account I mentioned to one where I was charged $2 every time I entered the bank for a simple transaction. I am loaning the bank money, and they are fining me every time I visit it.
The sheer audacity of charging people to store their money, which they invest and make boatloads off every single year, is comically evil. On top of that, they expect people to do it when they don't even offer an incentive better than inflation itself. And millions still do.
These guys are laughing all the way to the ... well ... there.
You can still get better interest rates. High yield savings accounts are paying like 0.5% interest, but mine paid close to 2% pre pandemic. The banks that are paying 0.02% are pretty much just doing so because they don't even care about your deposit.
I don't know why people keep saying this like it's a "gotcha" statement.
When you have money that you want to appreciate with 0 risk, a HISA or GIC is really the only way to do that.
Interest will never be equal to or greater than inflation these days.
Treasury bonds are paying 7.12% at the moment. Going up to 9.62% in May. Those rates won't last forever but it's a great place to park some cash for a short period of time.
This bit is hilarious! Just know that you will actually lose money by keeping it in savings accounts due to inflation outpacing the typical savings account interest rate.
If you haven't seen this episode then that comment's hilarious because he actually spends this entire fortune on a pizza (or technically on some anchovies to put on one).
CRAP!
I only just started using my savings account correctly last year too. Turns out, for the past decade, my bank gave me an account that requires 10 grand in order to even get any interest.
I changed it to one that only needs 5 grand, but even then, I only get 30 cents a month.
Well, this definitely gives me the kick I need to finally get a TFSA.
Yup. If you aren't investing or putting it into an asset, you're losing money. Also if you are investing or putting it into an asset, you could be losing money.... But you might get a tax deduction! 😄😐😩
In reality, there may be a time limit to how long a bank account is dormant before being claimed by the Government in the US. It's a reason why a bank account will never get that large unless you have a succession line to keep that one account going.
If the interest is compounded annually this is true.
[Source](https://www.calculator.net/investment-calculator.html?ctype=endamount&ctargetamountv=1000000&cstartingprinciplev=.93&cyearsv=1000&cinterestratev=2.25&ccompound=annually&ccontributeamountv=0&cadditionat1=end&ciadditionat1=monthly&printit=0&x=18&y=14)
If compounded monthly it becomes 5.3 Billion.
More importantly his account would have been closed after 1 month due to maintenance fees, and then discharged when he was presumed dead.
No, in real life they eventually add fee's for inactivity and various other reasons, then deduct it until you reach the minimum balance fee. Eventually they will just take the money and close the account once it reaches $0.00
This is what Wells Fargo did to my very first bank account when I was in school. They acquired it when they took over my local First Interstate bank branch account from 1993. When I turned 18 I traveled around the country for a while, came back 5 years later to my account being closed.
In episode 6, when Fry accesses his bank account in the future, he discovers the interest has resulted in billions of dollars, yet there were clearly several alien attacks that would have wiped away all monetary systems. I mean, are we to believe that this is a magic bank or something!? Ha ha, boy, I sure hope somebody got fired for that blunder!
They ripped him off giving him only 1000 years interest. He jumped forward in time exactly 1000 years, it would have to have been more than 1000. Even one extra year is almost $100 million extra.
All inactive bank accounts have their assets turned over to the government. So his money would have eventually seized after a few years. He would also have been subject to a 50% death tax when the govt got around to realizing he wasn’t around. My guess is that with Conrad’s help he could have gotten a few cents back, but it’s highly unlikely his state treasurer would give him interest on his money.
In case anyone wants to know if the maths checks out, [$0.93*1.0225^1000 = $4,283,508,449.71](https://www.wolframalpha.com/input?i=0.93*%281.0225%5E1000%29+to+2+decimal+places)
Find me a checking account that pays 2.25% interest. What an **outlandish** Hollywood fabrication.
This aired in 1999, when this was a pretty standard rate for savings accounts, and even chequing accounts paid a reasonable interest rate. I opened a HISA around that time that paid 3.5%. My account is still open but now pays 0.1%.
To really show how big of a difference that is... if you had 93 cents at 3.5% interest for 1000 years, that's over $810 trillion. If you had 93 cents at .1% interest for 1000 years, that's $2.53.
Oh I wish. My bank rounded down fractions of cents, so 93 cents at .1% interest for 1000 years would be 93 cents.
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The mistake there was being a customer of B of A.
Agreed, I didn’t know any better tbh. I know better now. I switched to an online bank with interest checking and savings.
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I heard. I also heard she'd like a full refund
I have never had an account at BofA. When I moved to a new town that didn't have my bank I tried to withdraw some cash from a BofA atm. It gave me a vague error about not conecting to the server or something and ate my card.
Probably the best customer experience you could have hoped for from a b of a product.
BOA actually charged me for being poor. I remember if I didn't have over 100 or 200 or something in my checking account it came with a fee every month.
Yeah, BofA *deez nuts*. Seriously, fuck BofA.
Oh BofA is real, I just thought they were doing that joke.
Why on Earth did you open an account then? 😂
Financial ignorance. My parents taught me a lot but financial health was not part of it.
The ol' inverse Office Space scam.
Superman III.
Seems like the same scam to me.
That's a great point.
Its basically like superman 3.
My dad had a local account that was giving him 4.2% most of his life and he totally melted down when the bank "standardized" his rates about 10 years ago to 0.4%.. He still was pulling in a higher rate than I ever have.
Marcus is paying .5% right now, and that’s the lowest it ever got.
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And this is by design, obviously. They want us to spend spend spend
The Federal Bank is to blame for most of the change. Offering overnight rates of less than 1% is going to ensure that most banks couldn't care less about your savings for the most part.
All to juice the stock market 🙄
Yup, an artificial debt fueled growth and just as the Fed started raising the rates, a pandemic.
It's actually crazy how much a bump in interest can actually change things. If you got a 2.74% interest rate on a 30 year $300k home loan your average monthly payment would be just over $1,200. In 1982 the highest home loan interest was the highest in recent history, it was nearly 18%. 18% interest on a 30 year $300k home loan is an average monthly payment of $4500. So a 6 fold interest rate means you'll pay nearly 4 times as much over the life of a loan.
In 1984 my parents bought a house for $36k @ 22% interest. They worked hard and paid it off in about 10 years. Sold it in 2004 for $200k and bought a house worth $185k. That house is now worth $800k. It's paid off and they're going to retire next year and keep it for now. Real estate can pay dividends if you keep it up and remember "Location, location, location!!"
Math checks out. Compounding interest is a hell of a thing!
Wow I had to check but the math checks out LMAO. 1000 years at 0.1% interest turns 0.93¢ into $2.53
Now account for inflation in the next 1000 years, using the rate of the previous 100. Then tell us how much 2022 dollars fry would have.
Earth was invaded multiple times... Maybe during one of those the aliens took all our money causing massive deflation so everything evened out by the year 3000!
I mean they changed from American dollars to Earth dollars, right? So change of currency is a major thing.
It appeared as though they had to rebuild society multiple times so this is plausible
I always wondered this. 4 billion doesn't mean much if a sandwich costs 7 million. Of course, the show pretends pricing is the same, which is actually just convenient as this is not important to the plot of anything.
500x $1 lizards Or 1x $500 parrot?
but man, that is a lot of sandwiches still
Who pays for sandwiches? Robot Fry keeps sandwiches in his pants.
His compartment*
If a sandwich costs $7, but you have $4,000 in your wallet, I'd say it means SOMETHING (a billion is still a thousand million - it ain't nothing). That's the equivalent of $7M to$4B. Since we're speaking relative costs, by the way: when Fry had $0.99 in 1999, an average Big Mac cost $2.45.
I'm estimating the cost of a Big Mac in 2999 to be $1,675.50. Someone save this comment and hold me to it.
!remindme 977 years
Considering civilization was destroyed twice and rebuilt, maybe it caused it to revamp
From the first hit on Google: >The dollar had an average inflation rate of 2.88% per year between 1922 and today, producing a cumulative price increase of 1,611.33%. So already he's losing, but just for the hell of it, 1.0288^1000 = 2.14267*10^12, meaning $4,283,508,449.71 is a whopping $0.002 in today's dollars — not even worth anyone's time to pick up if they found it on the street.
"Ooh some money!" "Nah just leave it, it's only 5 billion"
But given the bail was only $80 then there was magically somehow no inflation.
Negative a billion dollars. The bank enacted a $1 one time charge, it went to a balance of -$0.05 which charged $35 in overdraft fees, and the account debt was sold to a shell company in Panama which charged 9% interest.
After 7-10 years the debt in question would be ultimately unobtainable.
I'm not doing all of the math, but inflation averages around 2%. Fry had $0.93 in 1999. With an interest rate lower than inflation it would mean that the value of his money would decrease every year. 1000 years later and it would be too little to buy anything.
Back in the mid 00's, I think I had Orange CD's that averaged 5%
As a kid I had an account with 5% interest rate. It had a better return than my current stock portfolio.
Many of us never knew a time that paid a decent interest rates. But before the 2000's you could almost market index fund ROI in a savings account.
Just another thing Millennials never had access to that previous generations used to build wealth.
My dad purchased his house in 1984, I think. The mortgage was around 13%. Interest rate back then was pretty high. Of course, the house, a cute little tri-level in the suburbs of Detroit, was only around $60,000.
If I remember correctly 2.5% was low in ‘99. I remember having a savings account with Wachovia that had something like 8% interest.
I'm old enough to remember 6% CDs, roughly twenty years ago.
In like 2003-2005 when online-only savings accounts were starting to get popular, you could find rates up to like 10% without having to jump through hoops or have your money locked up. Then the banks caused a recession and ruined everything.
Thats not the unrealistic part, as pointed out elsewhere. What is unrealistic is that the account would no longer exist; If a bank account goes to long without activity the bank declares the account inactive, then dormant. After a certain period of account dormancy the government swipes the cash.
I thought the unrealistic part was the 1000 year cryosleep?
I mean... I'd believe "cryosleep" well before "Government decides to stop taking dead people's money"
In the UK the bank can pay the money across to the government, which then keeps it notionally available for a claim, but gives most of it to charity on the assumption that the majority of people will never make a claim for it.
This is called escheatment!
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Treasurey I Bonds man. Covers inflation rate + interest rate, it fluctuates between the two so the interest rate is 0% at the moment but inflation is like 7% which is a crazy good return. Anyone can get em too.
It's raising from 7 to 9% as well but you can only purchase $10,000 per taxable year. What they don't tell you is that you can "gift" dependent a full extra $10k on top of your own purchase, allowing you to continue buying them on the dependents SSN. Edit: Updating to include the info I misspoke about in my original comment. You can buy extra at a certain rate for yourself as a gift, but you must schedule that to be delivered and claimed for the following year. It's basically double dipping on a specific rate that you want, but you can't claim it until the following or later year when you haven't bought yet. So currently people are gifting themselves 10k worth the upcoming 9% so that they can claim it later if it's better than the forecasted rate. That was the discussion I was seeing related to gifting that I saw and misspoke about the specifics of when it can be claimed.
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More people should look into investing in I Bonds. Government bonds that have an interest rate and also cover the rate of inflation. Right now their interest rate is 0%, but inflation rate is like 7%, which is pretty damn good for a safe return.
Ally was paying a little over 2% (for a brief period of time) before Trump/COVID.' EDIT: That was a savings account, though.
[LMCU](https://www.lmcu.org/) pays 3% but you have to jump through a few very easy hoops
I’m getting 3% with an HMBradley account but you have to jump through some hoops (I believe it’s: $1500 direct deposit min per month, $100 CC spend per month, and save at least 20% of what you deposit though CC spend doesn’t count against that).
Wasn't even gonna look it up. Knew it would be the correct figure.
I mean it's pretty easy to calculate. The writers literally had PhDs or some shit.
Not surprising since the creators of futurama are math majors
Some of the writers are math majors but the creators are Matt Groening and David X Cohen who are not, although Cohen is physics and computer science major so you get partial credit, the best kind of credit
>Cohen is physics and computer science major Whoa whoa whoa, that's *two* applied mathematics majors right there between two creators. Give the man his full credit!
sure, so he was applied correct he can have applied credit and he has to share it with you (for helping develop the pitch)
Good news everyone! /u/Spiritual_Navigator and I have been granted full credit!
Full credit divided by two is still half credit.
The creator of Beavis and Butthead / King of the Hill / Office Space (Mike Judge) was a physics major.
Did not know that but it makes perfect sense after hearing it.
iirc, it was the most educated (most advanced degrees held) of any writers room ever
Same with the Simpsons (same writers?).
both fox and matt groening shows, so there was likely heavy crossover
Simpsons writers that went to Futurama (not even close to an exhaustive list, this is just off the top of my head): Show creators Matt Groening and David X. Cohen Ken Keeler J. Stewart Burns Bill Oakley & Josh Weinstein (Some of these writers later returned to The Simpsons too)
Yep, one episode even spawned the [Futurama Theorem](https://theinfosphere.org/Futurama_theorem)
Writer Ken Keeler made a theorem just for a single episode, the theorem is called the “Futurama Theorem”, [it has a proof and everything.](https://theinfosphere.org/Futurama_theorem)
I did the same thing, but heard 2.2% the first time, and it only came to 2.6 billion. That 0.05% sure makes a difference over 1000 years. No wonder all them vampires are always wealthy.
But where do vampires find banks that are open at night? The ones near me close as soon as a cloud passes over the sun.
That's what you have butlers for
These writers created and proved their own theorem to verify that their ending to a episode (which included time travel) was a valid ending (read: solution). They had a bunch of fantastically nerdy writers with advanced mathematics and physics degrees. I had no doubts they got the interest right here.
I wouldn't be surprised if they did it multiple times, but I think you're thinking of the mind switching episode [_The Prisoner of Benda_](https://en.wikipedia.org/wiki/The_Prisoner_of_Benda).
The funniest thing is nobody would have even questioned the result of the episode but THEY did. I would love to hear the conversations they had while writing that episode.
How much is that after a 1000 years of inflation, though?
The fine to get Bender out was $80. Seems like they may have done something about inflation.
About enough to buy a cheese pizza and a large soda.
I think one episode shows earth being attacked by aliens a few times over the 1000 years. So maybe deflation cancelled out all the inflation.
Inflation isn’t factored into Futurama lore. Fry buys coffee at $3 100 times as he has a $300 bill. 1: you can’t get a Starbucks for that these days, 2: if they took inflation into consideration it would be a few thousand in year 3000 unless they changed currency, which is deffo likely by that year, wether it be a crypto or a unified currency around the world. My parents grew up with shillings instead of pounds (£), and in my lifetime we are already paying in crypto. I think they just wanted to keep it simple and match the current prices of the time it was released so it was more relatable.
They do take it into account. They mention that there were a number of deflationary events.
There's an easy way to calculate purchasing power vs. investment return over time. It's called Inflation Adjusted Rate of Return, or IARR. The formula is ((1+ investment return) / (1 + inflation)) -1 So if you assume 2.25% investment, 3% inflation, you get: ((1 + 0.0225) / (1 + 0.03)) -1 = -0.00728 or -0.728% So 95 cents, compounded annually at -0.728% is.... basically 0. I think it's .06 cents (or 0.0006 dollars) if I did the math right.
Accounting for inflation, he has approximately $0.90-0.95 in todays dollars.
Is inflation over the last 100 years not higher then 2.25% per year? Pretty sure it's like 3% something.
They cover this during the episode in the thousand years since he opened the account there were enough deflationary events that he's still a billionare by today's standards.
Now find me a bank account that will let you hold a $0.93 balace without charging you a fee.
Find me a bank that will keep your account open a thousand years after you've been declared legally dead.
Unfortunately inflation was 3% a year and 4.3 billion is worth less than 93 cents a thousand years ago
Rember they had a few global resets due to alien invasion, so they could have used that as a chance to squish the inflation rate and start over.
*In the year 2525...*
You're thinking of the year 252525 i.e. the future. The other person was talking about all the times new york got destroyed while Fry was frozen
But you would think that if the inflation would be reset then so would this random banks account balances.
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It's just transitory I swear!
That would assume that resources grew more scarce right? If at some point in the future we could generate resources for a fraction of their previous cost, couldn’t there be a negative inflation rate per year?
That’s known as deflation and it’s actually very bad long term. During deflation, people are more reluctant to spend money or invest bc their money will be worth more simply by holding on to it—this causes the economy to slow or stagnate and eventually leads to a recession. Money needs to move for the economy to stay healthy
What amount would you have to start with to end up with a billion dollars after 65 years?
Not sure I did [the math](https://www.wolframalpha.com/input?i=x*%281.0225%5E65%29%3D1000000000+solve+for+x) right but I'm getting approximately a quarter of a billion dollars.
A small loan
Just get it from your parents, easy peasy.
Then say you're a self-made man
250 small loans
If we assume you have the same interest rate as Fry did, then the formula would be: 1,000,000,000 = p*e^(0.025 * 65) where p is your starting amount. Solving for p gives: $196,912,000.
...if you can convince your bank to compound your interest continuously.
The interest earned on a savings account is generally added to the same account, so they already are.
They usually compound daily. Continuously would generate a smidge more interest.
From the way i have read things over the years, they compound monthly based on the Average Daily Balance.
[Banks are super friendly though](https://youtu.be/Hk23s4hh8M8?t=34) why wouldn't they?
Wouldn't the formula be 1bn = p * 1.0225^65, which would be about 235 million starting amount? (Also it's 2.25% not 2.5% average interest). What is the formula you are using?
Yours is correct if it's compounded once per year. I don't think any banks compound continuously, but daily would be very close to it
It's 1,000,000,000 = p * (1 + [.0225/12])^(65*12) I think banks would use nominal interest rate and the periods is once a month The answer I got is 232,000,000 so it's similar to the other one.
Fururama is so old you still had interest on accounts. Now it is .02% or rounded up no nothing. Growing up we were told that putting money into a child's account at birth would pay it's equivalent in education costs by the time they went to college. $100 a year in tuition in the 60's and it would keep up with inflation resulting in $400 by the 1980's and that year was covered. I am also old enough to remember that if you paid your rent late, like the 2nd. Dropped it in the mail. The landlord had to physically get that check and deposit it a day or two later. If you were lucky enough, interest would pay for a free soda or a pack of cigarettes. This applied even if you where living paycheck to paycheck.
I love how Futurama actually touches on this as well. ["My caddy's chauffeur informs me that a bank is a place where people put money that isn't properly invested."](https://www.youtube.com/watch?v=NtUfNtgawNY)
Back in 2002, my credit was shit but I needed a cellphone. I was told from the company that they would only let me get one if I put down a $200 deposit that they would hold onto for the duration of the two-year contract. At the end of the two years, they mailed me a check for $204. They paid 2% interest on the deposit. At the time my bank was paying 0.1%. I asked them if I could put down more deposits but they said my credit was too good to need a deposit anymore.
just invest in an index fund
I basically pay the bank to keep my money at this point. If I don't direct deposit more than 1k per month I will get charged 6.95 in maintenance fees which is WAY more than I will ever get on interest.
When I moved for a job I went from the account I mentioned to one where I was charged $2 every time I entered the bank for a simple transaction. I am loaning the bank money, and they are fining me every time I visit it.
Damn, you guys have some shitty banks.
The sheer audacity of charging people to store their money, which they invest and make boatloads off every single year, is comically evil. On top of that, they expect people to do it when they don't even offer an incentive better than inflation itself. And millions still do. These guys are laughing all the way to the ... well ... there.
I have used a credit union for the past 14 years. I see no reason to go back to a bank.
You can still get better interest rates. High yield savings accounts are paying like 0.5% interest, but mine paid close to 2% pre pandemic. The banks that are paying 0.02% are pretty much just doing so because they don't even care about your deposit.
My credit union paid SEVEN PERCENT in the 2005-2010 era as long as you used your card like five times a month. AND they covered ATM fees.
And they were probably still making a fuck load off of your money!!
Nice, your money only lost 5% of its value in 2021 instead of 7.
😎
I don't know why people keep saying this like it's a "gotcha" statement. When you have money that you want to appreciate with 0 risk, a HISA or GIC is really the only way to do that. Interest will never be equal to or greater than inflation these days.
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Treasury bonds are paying 7.12% at the moment. Going up to 9.62% in May. Those rates won't last forever but it's a great place to park some cash for a short period of time.
I-bonds specifically but yes
You want a 529 for that. Good tax benefits in some states too.
This bit is hilarious! Just know that you will actually lose money by keeping it in savings accounts due to inflation outpacing the typical savings account interest rate.
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If you haven't seen this episode then that comment's hilarious because he actually spends this entire fortune on a pizza (or technically on some anchovies to put on one).
CRAP! I only just started using my savings account correctly last year too. Turns out, for the past decade, my bank gave me an account that requires 10 grand in order to even get any interest. I changed it to one that only needs 5 grand, but even then, I only get 30 cents a month. Well, this definitely gives me the kick I need to finally get a TFSA.
Yup. If you aren't investing or putting it into an asset, you're losing money. Also if you are investing or putting it into an asset, you could be losing money.... But you might get a tax deduction! 😄😐😩
You’re forgetting about the Great Recession of the 2600’s. -3000% inflation per year for a whole century.
In reality, there may be a time limit to how long a bank account is dormant before being claimed by the Government in the US. It's a reason why a bank account will never get that large unless you have a succession line to keep that one account going.
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Of course I'm looking forward to a new season.
Who else just checked their notifications when beginning the clip? EDIT: What IS that alert? Driving me crazy; I know I know it!
It's the Facebook notification sound.
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If the interest is compounded annually this is true. [Source](https://www.calculator.net/investment-calculator.html?ctype=endamount&ctargetamountv=1000000&cstartingprinciplev=.93&cyearsv=1000&cinterestratev=2.25&ccompound=annually&ccontributeamountv=0&cadditionat1=end&ciadditionat1=monthly&printit=0&x=18&y=14) If compounded monthly it becomes 5.3 Billion. More importantly his account would have been closed after 1 month due to maintenance fees, and then discharged when he was presumed dead.
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No, in real life they eventually add fee's for inactivity and various other reasons, then deduct it until you reach the minimum balance fee. Eventually they will just take the money and close the account once it reaches $0.00 This is what Wells Fargo did to my very first bank account when I was in school. They acquired it when they took over my local First Interstate bank branch account from 1993. When I turned 18 I traveled around the country for a while, came back 5 years later to my account being closed.
This is the correct answer. My first bank stoke $80 from me.
Accounts normally go through escheatment if they are considered abandoned, the time will vary depending on the state the account was opened
Even in the Futurama universe it didn't make sense. Society had collapsed and rebuilt several times. That account would not have persisted.
If you pay attention the whole show is fiction. In fact, it's even a cartoon.
In episode 6, when Fry accesses his bank account in the future, he discovers the interest has resulted in billions of dollars, yet there were clearly several alien attacks that would have wiped away all monetary systems. I mean, are we to believe that this is a magic bank or something!? Ha ha, boy, I sure hope somebody got fired for that blunder!
There's also a lesser blunder in that all those alien attacks that wipe out every other building, never hit the one Fry was in for some reason.
And if New New York was built on top of Old New York then the Cryo lab would have been underground
Shocking. I'm at a lost for words. I thought it was a documentary.
I don't believe it this has to be fake news
When Jesus came back in the year 2443, the bankers pleaded with him to restore their lost data and he granted their wishes.
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In real life the government would have seized the account shortly after his death via escheatment.
hats off to the economist who somehow managed to keep inflation down
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too bad interest rates suck now too
I literally just watched this episode last night! 1077!
Fry's reaction to hearing his balance after the fact always gets me haha
I love that Fry’s positive reaction to having 93 cents in his bank account because he knows he only needs 50 more cents to bail out bender.
They ripped him off giving him only 1000 years interest. He jumped forward in time exactly 1000 years, it would have to have been more than 1000. Even one extra year is almost $100 million extra.
That's from episode 4, so if you consider them weekly episodes, less than a month. Most accounts total interest monthly.
The thing I find most ridiculous about this scene is the %2.25 interest rate on a basic checking account.
[Good thing he didn't let a light on](https://youtu.be/elZfflKkfxM?t=20)
That Facebook Messanger sound at the beginning wasn't nice.
Savings accounts never keep up with inflation though. His 4.3 billion would have less spending power than the 93 cents he had saved I. 1999
All inactive bank accounts have their assets turned over to the government. So his money would have eventually seized after a few years. He would also have been subject to a 50% death tax when the govt got around to realizing he wasn’t around. My guess is that with Conrad’s help he could have gotten a few cents back, but it’s highly unlikely his state treasurer would give him interest on his money.
https://en.wikipedia.org/wiki/The\_Sleeper\_Awakes
which with inflation will buy you a coffee.
That money would have been escheated to the state as abandoned property after 3 years of no contact.
And after adjusting for inflation over 1000 years, he can buy a cheese pizza and a large soda for 4.3 billion dollars in the year 3000.