How do I convert 1990 dollars to 2007 £ sterling?

Question

Do I convert 1990 US dollars to sterling at the 1990 $/£ exchange rate then apply the UK interest rate up to 2007?

Or do I apply the US interest rate to 2007 then use the 2007 $/£ exchange rate?

I have a graph of estimated costs of carbon emissions up to 2020 in units of 1990 US dollars. I need to know what that means in 2007 pounds sterling.

OK, what I mean is despite the US dollar being worth 50% more now than in 1990 (not sure what that means, just going on what Paul says) it's only worth 50p when it used to be worth closer to 66p.

All I need to know is if there's an accepted time to make the conversion. Or am I missing the point?

Thankyou, rage. Yes I meant inflation rate. As you can tell economics and finance are not really my forte.

Answer 1

By interest rate, you mean the inflation rate!

1990 US$ convert to 1990 GBP£

Then convert 1990 GBP£ to 2007 GBP£

Answer 2

ok - if I read your question correctly then the value of the dollar has gone up about 50% from 1990 up untill 2005 (there are no figures for beyond that date although I doubt they have changed that much in the last year or so) .. so $100 in 1990 will now be worth $150 which in UK£ at todays rate of exchange = £76.53

Answer 3

Interest rates have nothing to do with calculating what you get in £. The foreign exchange rate changes every second and the second you exchange it, that is the rate at which you convert. You can check the exchange rates online or in the newspaper.

Answer 4

Interest rates?
What are you on about?
To convert one currency to another simply convert using the current exchange rate!
Don't apply any interest rates to any of it!


1,990.00 USD United States Dollars = 1,016.91 GBP United Kingdom Pounds


http://www.xe.com/ucc/
For a good currency converter

Answer 5

doesnt matter about 1990 just now its $1.85 to the £ ..a dollar is still a dollar