Tuesday, July 15, 2008

And THAT is what we call Compound Interest

In the early months of the Civil War, the city of Tampa needed ammunition and other supplies to defend against attack but apparently was short on cash.

So it issued a promissory note for $299.58 to storekeeper Thomas Pugh Kennedy on June 21, 1861.

Kennedy's great-granddaughter says the city never made good on its loan. Now, Joan Kennedy Biddle and her family are suing to collect the payment plus 8 percent annual interest.

The total bill: $22.7 million.
Full Article

Shakespeare may have been wrong about that "neither a borrower nor a lender be" schtick. Of course he also romanticized teen suicide for centuries so maybe its time we reconsider more of his stuff.