How does planting tropical hardwood trees compare with leaving my money in a savings account or CDs to accumulate interest for 25 years?
It is difficult to predict what future interest rates on savings accounts and CD’s will be. However, as an example, if you were to put $16,000, the price of 500 teak trees, into savings or CD’s today at 4% compound interest and allowed the interest to accumulate for 25 years, you would have a total of $42,653 at the end of the 25 years. This amounts to total increase of 266% on your invested capital. This compares to the approximately $443,312 projected cumulative net harvest proceeds over the next 25 years from planting 500 teak trees. This amounts to a compound rate of return of approximately 14.21% per year and a total 2700% increase in your invested capital.
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