Go to Jeff Salisbury LWGate Home Page.From: David Hodges <dhodges@recol.com>
Subject: Re: Inflation Calculator
Date: Mon, 24 Jan 2000 16:25:26 -0500
Next Article (by Author): Re: Inflation Calculator David Hodges
Next in Thread: Re: Inflation Calculator Rich Carreiro
Articles sorted by: [Date]
[Author]
[Subject]
At 04:06 PM 1/24/00 -0500, Rich Carreiro wrote: > >do. But they want a simple inflation calculator. The client puts in the > >starting year, starting amount, and ending year, and the calculator shows > >the ending amount as adjusted by inflation. > >What is the "ending amount"? The problem seems underspecified. Is this >the question you are trying to answer: "I have $1000 today. If I just >stick it in my mattress, how much will that $1000 be worth in >today's dollars 30 years from now"? Yes, this is the question we are trying to answer, the "stick it in the mattress" one. >And do you want to be able to output intermediate results (i.e. values >after each year), or just show the final result? I think either option should be possible....the user picks whether they want a year-by-year schedule or just the final result. >First, how do you plan to use a table of past inflation data when >going forward? You can't just "replay" past inflation series. > > > Y = X * (1 - C) > >It would be > Y = X / (1 + C) Okay, so given $1000 to start and an inflation rate of 2%, my formula gives $980 and yours gives $980.39. So I can see how over many years the errors would chain up. I don't understand why your formula is better though I believe you that it is. As you say, my formula takes dollars away from you. But why does yours make the dollars worth less? (Admittedly I'm a computer programmer, not a mathematician). Thanks, David - -
Next Article (by Author): Re: Inflation Calculator David Hodges
Next in Thread: Re: Inflation Calculator Rich Carreiro
Articles sorted by: [Date]
[Author]
[Subject]