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Loss of Purchasing Power
Shows the real value, in today's purchasing power, of an amount available in a few years.
Type values, assign them with the value keys and press "Solve". It is the same financial calculator as under "Calculator" in the menu above.
Examples for this calculator
Each example is a story with explanation and a "what you learn" takeaway.
Formula
Today's purchasing power = amount / (1 + inflation)^n
How the formula works
Here it is discounted: purchasing power = amount/(1+inflation)ⁿ. You convert a future amount back into today's purchasing power and see how much real substance inflation devours over the years.
Discounting the future amount with the inflation rate.
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