Financial/money/bank question...

[zidane1strife]

Ok, just saw Swordfish last night... and something caught my attention...

It appears that, If I heard right, $400M became $9.5Billion in 15yrs due to bank interest payments accumulation.... after some rough calculations such interests must've been an insanely large 25%!!!!!!

Is that for real? Is there any sort of account where every $400K becomes $9.5M after 15yrs in the real world?

 

[DemoCoder]

Long term gains are usually about 7-15%. Over short periods of time, like the .com boom, I can believe in incredible returns. Some funds returned 40% in that era, and VC funds like lotteries are designed to return thousands to one if they get lucky (e.g. you fund the next Microsoft by luck)


In its heyday, Long Term Capital Management, the hedge fund had trillions of dollars in positions before it melted down from the Asian crisis, could return a surefire 30% by hedging across the world market and using continually balanced hedges via options pricing equations.

 

[zidane1strife]

Wow, thanks.