Inflation: real value of money

Set an amount, the inflation rate and the number of years to see what the money will really be worth.

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Questions students ask

What is real interest?

The interest rate minus inflation. If savings earn 7% and inflation is 6.5%, real growth is only about 0.5%.

What formula does it use?

Real value = amount ÷ (1 + inflation)ᵗ.

Free notes on inflation

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