If i lent 10 pence in 1974 to someone wat would they owe me now, including inflation and interest rates of UK.

Question

If i lent 10 pence in 1974 to someone wat would they owe me now, including inflation and interest rates of UK.

Answer 1

if i had taken 10 pence in 1974 from you i would have forgotten about it long long back.

Answer 2

Inflation is meaningless. The interest rate should account for inflation. Someone woudlnt pay you based on inflation. The interest rate you charge should account for risk of inflation giving you your "real" rate of return. Interest rate - rate of inflation.

For your calculation I looked at the average base UK interest rates since 1989 (as far back as I could find) It averaged around 7%. 10 Pence compounded montly at 7% annual interest rate would give you about 107 pence in 34 years.

Based on average inflation rates in the UK since 1974. 10 pence then would be about 74 pence in todays value. Hope this helps.

Answer 3

10 p unless you stipulated an annual percentage interest

Answer 4

It depends on the interest rate of the loan. If the loan was 0% interest, they owe you 10 pence regardless of inflation.

Answer 5

10 pence is about 74 pence in todays value.

x.skinny