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John Nordstrom's avatar

I love baseball and economics. Students really struggle with future value but I think many of my sports loving students will like this example. I have known about this Bonilla thing, but as in all teaching, there are more examples than time and once we have a good one, we don't look for great ones any more. Thanks for laying it out so nicely.

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Jadrian Wooten's avatar

Maybe this will be the pressure that Eric needs to get his project formalized and put online for people to adopt. He's got great resources already prepared for people to use.

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Dr. Abdullah Al Bahrani's avatar

While I heard this story so many times before, it is the first time I learn about the Madoff connection. Always a new nugget of information.

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Jadrian Wooten's avatar

It's easy to offer 8% when your investor is offering you 12%

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Evelyn's avatar

What a great example of future value!

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Jadrian Wooten's avatar

It's too bad you won't be at JET SET! Eric will present a project on using this contract to teach present and future value.

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Eric Dunaway's avatar

I actually presented this last year at JET SET. I'm doing sports betting in the classroom this year!

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Jadrian Wooten's avatar

Well then, you definitely need to submit it to JET as a publication!!

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Evelyn's avatar

Bummer! It is indeed a great example, even though I do not follow basebal!!

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Jadrian Wooten's avatar

I'm optimistic that he'll submit it to JET to be published as a standalone article. At the worst, he'll make his JET SET slides available.

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Luis Zelada's avatar

Absolutely! It is amazing to read about how money grew for Bobby over time.

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Luis Zelada's avatar

It is very interesting to read Bobby Bonilla’s story because it show us how the New York Mets invested in economists and financial planners. Additionally, it teaches us how the Compound Interest works.

Based on the story, Bonilla’s contract might seem silly, but in reality, it is amazing because it shows us how money grows with time. In our current time, we expend a lot of money immediately and we forget to think about our future.

In conclusion, we have to invest in our financial planner, be patient, and let the Compound Interest work by itself.

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