Asked in Currency ConversionsYouTube
What would 187 in 1900 be worth today?
August 31, 2007 1:08PM
I'm assuming you mean 187 dollars. There are three possible answers to this question.
If you have $187 in paper money that you want to spend, it is worth $187.
If you have $187 in paper money that you want to sell, only someone who wants to buy it can tell you what it is worth.
If you are talking about an account that had $187 in it in 1900 you would use this formula:
FV = Future Value (what it is worth now)
PV = Present Value (what it was worth then)
i = interest rate and
n = number of compounding periods.
We can only guesstimate the an interest rate as they have been changing for years.
Assuming that the money was deposited on January 1, 1900 and was compounded annually since then, and taking 3% as a guess for the average rate of interest since then we have:
FV = 187 * ( 1.03)^107 = 4420.03