Compensating for inflation

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Compensating for Inflation
(This is a premium feature)

In this example, we think we will have income of $80,000 twenty years from now. We expect inflation to run 3% per year. We calculate that the future value of $80,000 is equivalent to $44,294 in today's dollars.

Store:

Interest .03
FV 80,000
Pmt 0
N 20

Calculate

PV -44,294

In this case, the signs are not important. The FV and PV will have opposite signs.

With the current release of ActiCalc, all financial calculations assume payments are applied and interest calculated at the end of the period.

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