Time value of money - future value (inflation)

watch this video to understand why grandpa's breakfast costed less than yours.

Level - BASIC

Time value of money is a useful concept with several applications. Learn how to look at yesterday's money for its value today.

AUTHOR(S): Uma Shashikant

Explore

1 2 3

    1.The value of money has reduced between 50 years ago and now because



  • The exchange rate has lost value
  • People spend much more nowadays
  • Prices of all goods and services have increased
  • 2.A rupee earned 10 years ago can be compared with a rupee earned today by



  • Multiplying past earnings by number of compounding years
  • Calculating discounted value of past earnings
  • Calculating future value of past earnings
  • 3.Mr.A has Rs. 1 lakh of savings just kept in cash in a safe. After 5 years of high inflation, the value of that sum will be



  • Much more than Rs.1 lakh
  • The same, because it has remained untouched in the safe
  • Much lesser than Rs.1 lakh
Sponsor Name : MoneyKraft
Share :
Facebook
COMMENT :
Submit

No Comments Found