what is half a million pesos worth today?

Question

the cd was purchased or saved in 1987 at 12%. since i don't understand their exchange rate or even it the new peso applies, how do i figure out what it is worth? has it lost it's value? gained? worth looking into?

Answer 1

First of all, we both know that Mexico remonetized in 1993 and 1000 old pesos equals 1 new peso. Therefore, the base value of your CD is 500 new pesos, about US$44.85. At 12% interest, the value doubles every six years, so with interest, your CD has doubled three times. That means it's worth between eight and nine times the purchase price, or somewhere around US$360. Probably worth your while, so far.
Now: What bank is the CD from? Is it still in business, and if so, under what name? Most Mexican banks have been bought by foreign banks over the last few years, so your bank is probably still in business under a new name.
If you let me know which bank, I can tell you if they are still around. As an example, Banco Internacional is now HSBC. Banco Nacional de Mexico is still doing business under that name, even though they were bought out by Citibank.

Answer 2

$44,850.2