Time Value of Money and Inflation By: Brigitte Granda.

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Presentation transcript:

Time Value of Money and Inflation By: Brigitte Granda

Definitions The Time Value of Money is figuring out the giving amount of interest. Inflation is the rise of price of goods and services in the economy. An increase of a price and the decreased of the money value.

The 1950s to Today ITEM: Milk The item cost.82 in The item costs $ 4.49 today It has gone up $3.67 That is a percent increase of 367% So the inflation is 367%

The 1950s to Today ITEM: Gas The item cost.20 in The item costs $3.99 today It has gone up $ 3.79 That is a percent increase of 1895% So the inflation is 1895%

The 1950s to Today ITEM: Television The item cost $199 in The item costs $499 today It has gone up $ That is a percent increase of 300% So the inflation is 300%

The 1990s to Today ITEM: polo shirts The item cost $.99 in The item costs $85 today It has gone up $84.01 That is a percent increase of % So the inflation is %

The 1990s to Today ITEM: Snow Board The item cost $199 in The item costs $230 today It has gone up $31 That is a percent increase of 15.57% So the inflation is 15.57%

The 1990s to Today ITEM: Bunk beds The item cost $299 in The item costs $998 today It has gone up $699 That is a percent increase of % So the inflation is %

Questions: Calculating inflation over the past 60 years helps us to see how prices have increased on the items we need the most. Why is it important that people get raises? The amount that get paid has to increase with the items as well. If you get a 2% raise every year, will you be able to keep up with inflation? Why or why not? Yes we will because even though its just 2% we will be able to buy items that have also increased.

Conclusion: What I have learned Over the past 60 years time value of money have increased on things we use on our daily bases. Some items that we barley use, for example the snowboard stays the same price. It is also important for us to notice that the value of money tends to lose its value due to inflation.