How much are we owed?

This is not a simple question. First of all, we don't remember. Second, some of us got some of the deposit money back, but different amounts at different times. Third, even if we did know the exact figure(s), how do we figure in exchange rates and inflation or deflation? And fourth, should we expect interest on the money?

Let's tackle these one by one.

1. Even though we don't remember, let's try to figure it out. The original deposit on the apartment was 2 months rent, at 180,000 yen per month. So that's 360,000 yen, or 90,000 yen per person.

2. Even if 90,000 yen was the original amount, it's completely unclear who got back what when, so let's skip to the next one.

3. Exchange rates: tricky. During 2002, the yen varied in value from about 115 to 135 per dollar, which would mean 90,000 yen could be worth anywhere from $782 to $666. Let's split the difference and call it $724, which is actually fairly close to what 90,000 yen is worth at today's exchange rate ($758). Ok, then what about inflation/deflation? Well, during that time the US experienced mild inflation and Japan had mild deflation. Let's call it even. So, scientifically hypothetically, Tim owes each of us $724. Only that was 13 years ago. If Tim had invested it, what would it be worth today?

4. In mid-2002, the S&P500 was at about 975. Today it closed at 2,105, a 216% increase. If Tim invested our money in an S&P500 fund, our $724 would be worth $1,563. Of course, there are myriad investments he could have taken. If he had invested in Washington Mutual, for example, our deposit money would have been wiped out in the Global Economic Meltdown. But even a ultraconservative investment in a 3% CD would be worth $1,069 today.

Ben Folds Five puts it a bit harsher than we would, but the main message is the same: