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compound Inflation

  1. #1
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    compound Inflation

    I have a simple compound inflation calculation question.

    If:
    A1=x
    B1= 3% (the rate of inflation
    C1=Y (years of degradation)

    then how do you find what x will equal in Y years assuming that X degraded in value each year?

    Thanks

  2. #2
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    re: compound Inflation

    Wouldn't this be a Future value question with FV=PV (1+rt) ?

    FV=Future Value
    PV=Present Value
    R=Rate
    T=Time

    =PV*(1+(R*T))

    I could have understood the question wrong too :-\

  3. #3
    Forum Expert shg's Avatar
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    re: compound Inflation

    =FV(A2, A3, 0, A1)

    FV will be opposite in sign to PV. Inflation rate would be a negative number (e.g, -3%).

    Or you could use =A1 * (1+A2) ^ A3
    Entia non sunt multiplicanda sine necessitate

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