Prince of Wales to pay of historic debt

  interzone55 16:19 09 Jun 2008

click here

Price Charles is to pay off a debt of £453 3s incurred by King Charles II 357 years ago.

The Prince is paying just the debt of £453.15, not the interest.

My calculation may be a wrong, but 357 years of 6% compound interest gives a sum a little shy of £500,000,000,000.

  The Brigadier 17:27 09 Jun 2008

"According to the Institute for the Measurement of Worth website, the sum of £453 and three shillings in 1651 would have been worth approximately £47,500 in 2007, if interest was taken into account".

  interzone55 17:29 09 Jun 2008

I thought my calculation must be wrong, but I simply added 6% per year, for 357 years & it came to that huge number.

Good job I don't work in a bank...

  pj123 18:13 09 Jun 2008

I think the interest should be taken into account.

Why should he get away with it?

I would expect the full £47,500 not £453.3s

I always get charged interest from organisations if I don't pay in full immediately so why shouldn't he.

  belfman 18:14 09 Jun 2008

You'd be good for the bank and bad for the customer.

  Arthur Scrimshaw 20:07 09 Jun 2008

you were only a bit out, using a compound interest calculator and 4% pa the amount comes to £545000000.
I don't know how the Institute for the Measurement of Worth did it's calculation. Clearly not using compound interest.

  interzone55 20:47 09 Jun 2008

Thanks, I thought I was going a bit mad, I was sure my calculation was correct.

I've just redone it with an online compound interest calculator @ 6% and got the same answer, £490,270,637,379.32.

  jakimo 18:48 10 Jun 2008

I would have thought there still remains quite a bit outstanding,if it had been you or me the bailiffs would have been around long ago for the outstanding balance

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