NotoriousREV

I saw this on the BBC Website and it got me thinking.

Does anyone do this? Where the hell do you get 10%?

davegtt

£2 everyday for 50 years is only £36500 so I suspect theyre suggesting invest 10% more than £2 each day. Otherwise beats me where theyve plucked 10% from

TopBanana

Without doing the sums, I expect they mean 10% growth per annum.

PeteBrant

Yup its going to be a compound interest type affair

borat52

10% would be the fictitious interest rate, eg, £730 (£2 a day for the first year) would be worth nearly £86k after 50 years in your 10% a year interest account.

I think the more important point is, what will £1 million actually buy you in 50 years? Most of the value will probably be eroded by inflation (I'm sure 50 years ago you could buy a house for less than £1000) so £1 million then will not be worth what it is now, hence a pretty pointless thing to do.