0
No. Future Value Calculators use a set amount, payment and interest fee to calculate. If you need to apply the inflation factor, you will need to use an Inflation Calculator.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What happens to the future value of money when the inflation exceeds the interest rate?
it will increase
When the inflation rate is zero is the present value of one dollar is identical to the future value of one dollar?
Yes.
What happens to the future value of money when the inflation rate exceeds the interest rate?
it increases
How can you calculate the loss of real value in a 10000 savings account if inflation is 10 a year for 3 years versus the loss of real value if inflation remains around 3. How much less would that savi?
...savings account be worth if inflation goes up? (For this exercise, do not consider interest paid.)
How can I tell what the return would be on an investment?
You can use a specialized tool called a "return on investment calculator." One of these special tools can be found here: http://www.money-zine.com/Calculators/Investment-Calculators/Return-on-Investment-Calculator/ It takes the amount of the original investment, the future value of the investment, and the time elapsed into account.
More than one net present value?
The present value depends on assumptions made about interest or inflation rates for the future.
Is there a table showing the value of a dollar in any past year relative to today?
Yes, there are historical inflation calculators available online that can provide you with the value of a dollar in a past year relative to today. These calculators take into account inflation rates to show the purchasing power of a dollar at different points in time.
If the inflation premium for a bond goes up the price of the bond?
The price of the bond decreases; the inflation premium would increase the market interest rate, which in bond valuation is located in the denominator, and the coupon payment rate is located in the numerator. When calculating the NPV of future coupon payments, as the denominator or market interest rate + inflation premium increases, the Net Present Value of future coupon payments decreases and the overall value of the bond decreases as well. The price of the bond decreases; the inflation premium would increase the market interest rate, which in bond valuation is located in the denominator, and the coupon payment rate is located in the numerator. When calculating the NPV of future coupon payments, as the denominator or market interest rate + inflation premium increases, the Net Present Value of future coupon payments decreases and the overall value of the bond decreases as well.
House price is 250000 with 4 percent inflation rate how much will the house cost in five years?
If price of House is Rs. 2,50,000.00 Inflation 4% annually. After 5 years, Price of house will be: Future value = Present value (1+ inflation rate) ^ years i.e., 2,50,000.00 * (1+0.04)^5 = Rs. 3,04,163.23
Which of the following groups benefits from unanticipated inflation?
It depends on the situation. Say I put $10,000 in a savings account at 2.5% a year. The expected rate of inflation is 2% so my money is gaining value. However if there's say 3% my money is losing value and the bank benefits because they're paying under the inflation rate.
How does the investment calculator help one with finance and investing?
Different calculators can tell you different things about finance and investing. Like the Time Value Calculator can tell you the future value of an investment based on periodic investments, hypothetical rates of return and investing time frame. Find out more about investment calculators at www.americancentury.com
What is the future value of 4000 for 5 years at 4 percent compounded bimonthly?
the future value of $5,000 in a bank account for 10 years at 5 percent compounded bimonthly?
