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THE SCENARIO
Today is the birthday of America's first president, George Washington. Happy birthday, George! He may have died 220 years ago, but he appears on our $1 bills even today.
Back when he was born, in 1732, the British pound was being used as currency in the UK, and that's true even today, so we'll use that currency for this example - the math works the same regardless of the currency we talk about.
So let's say that on the day of George's birth, his parents (then subjects of the British crown)
sold an ounce of gold for £4.25, and then proceeded to invest it at a modest 5% annual return ever since.
The questio... Read more...
