Inflation Mathematics question

Discussion in 'Wealth Creation & Management' started by JulieW, Mar 3, 2013.

  1. JulieW

    JulieW Well-Known Member Silver Stacker

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    Can anyone tell me how much $3,000 put away in 1985 would be worth today if only the Australian CPI was applied to the original amount?
    or point me to some calculators?

    Thanks Stackers.
     
  2. hyphenated

    hyphenated Active Member

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  3. Holdfast

    Holdfast Well-Known Member Silver Stacker

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  4. SliderC

    SliderC Active Member

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    Silver in 1985 approx $6 per ounce.
    $3000 / 6 = 500 Ounces

    The average yearly income in Australia in 1985 = $20800 ($400 per week)
    As a percentage of yearly income $3000 spent on silver would be approx 14% of your income invested in 1985 ($20800 / $3000)

    Value Today @ $28 per ounce: $14000

    Average yearly income in Australia in 2012 = $69580 ($1,338 per week)
    Percentage of yearly income = $69580 / $14000 = Approx 20% of income in 2012

    Saving 14% of your income in silver in 1985 gets you 20% of your income in 2012. Not a bad preservation of wealth

    Using this "moment in time" look and disregarding any market conditions during the period, Wages have increased 350% in 27 years where as as Silver is up 466%.
     
  5. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    Apple Inc. Share price in 1985 $2 per share.
    $3000 / 2 = 1500 shares
    Value Today @ $430 per share: $645,000
     
  6. SliderC

    SliderC Active Member

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  7. wrcmad

    wrcmad Well-Known Member Silver Stacker

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  8. SliderC

    SliderC Active Member

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