[pct-l] use of that much money

[blisterfree at isp01.net (Brett)]

C'mon Kraig, give us a break. The average thru-hiker hits 
the trail with just enough spare funds in the bank to 
complete the journey and handle down-time thereafter while 
looking for a job. He/she/it is not bankrolling that 5 grand 
for years and years, waiting for compounding interest to 
work its magic. Why? Because he'd long since have lost 
interest (in waiting to hike!) before the interest on $5000 
equaled the principal. Even if he squirreled that money away 
at, say, 3.5%, the yearly interest earned would be a mere 
$175. Assuming the interest is compounded, the following 
year's new interest earned would be $181.

Year 3: $187
Year 4: $194
Year 5: $200

After 5 years of sitting on the nest egg, we've netted a 
grand total $937. If the goal is still to complete the 
thru-hike using interest alone, we're left dreaming in the 
corner for an entire generation. Unfortunately this is 
planet earth, not the moon, and the 365 days it takes to 
revolve around an annual percentage rate equal in mass to 
space dust is better spent making the most of what we 
already have.

- bf


----- Original Message ----- 
From: "Kraig Mottar" <kraig.mottar@verizon.net>
To: "Greg Hammond" <mr_potatohead2005@yahoo.com>; 
<pct-l@mailman.backcountry.net>
Sent: Sunday, December 12, 2004 8:54 PM
Subject: Re: [pct-l] use of that much money


> Apparently little is known here about compount iterest.
> Get as simple compound interest computer program and 
> you'll see you don't need a million dollars to make it add 
> up.
> And make sure it is money you don't need, ie savings.
>
> Kraig
>