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<p>Actually, if the inflation rate were 5% over the past 206 years (1804 - 2011), the $5,000 would be equivalent to about $115.9 MILLION (at a 4.0% compounding rate, the $5,000 grows only to about $16 million). Its called the power of compounding, folks. You can see the comparative value by looking at the recent $200 million gift by a donor to USC – it is literally worth much more than the founding grant to Brown! $5,000 grows to $72,000 only if the 206 year compounding rate is 1.3%</p>