What will be the equivalent of $100 in todays money in ten years time?

Problem

Due to inflation, $100 that you have today doesn't have the same buying power in ten years time as it has today. Prices usually go up...

For example, if something costs $100 today, and prices rise at a rate of 2% per year, you'll need more than $100 in ten years time. On the other hand, you were able to buy a lot more with $100 ten years ago than you are able today.

So, what will be the equivalent of $100 in todays money in ten years time if inflation is at 2%?

Solution

Set up the following cash flow or open the "Inflation -equivalent" example in the Help examples folder.

Comment	Type	Occurs	Date	Amount	Occurrences	Change	Step
Ten years ago	date	once	1-1-1994
Loan	inflow	once	1-1-2004	100
Ten years forth	date	once	1-1-2014

Enter 2 into the rate field and select annual compounding.

The NPV and NFV results display what you needed ten years ago and ten years forth to have the buying power of $100 today: $82.04 and $121.90 respectively.