money question. $10,000 in 1975 would be equivalent to what dollar amount today? Is there any kind of formula?

Answer 1

Yes, all you have to do is compound the inflation rates for each year.


For example, assume the CPI for 1975 was 10%, 1976 was 8%.

To find out the 1977 value; you take 10,000 * (1.10) * (1.08).

You'll obviously need the inflation rates for the entire period, but there are websites with this information.

Answer 2

CPI stands for 'Consumer Price Index' and measures the increase in prices from year to year. This is usually represented as a percentage (%). A 'basket of goods' is selected that represents the purchases of an average consumer.

By increasing youe $10 000 by the CPI you will get a good representation of what would be equivalent today.

Taking just one good is not much help. A letre of petrol cost $0.50 in 1974 and today costs $1.20. This represents an increase of 140%. 140% of 10 000 is 14 000, so this is the increase. On this basis, your $10 000 is now $24 000. However in the same period house prices have increased 225%. Neither of these gives a true picture. If you take wine, for example, the prices have fallen by 10%. NO ONE ITEM can be used.

Find the CPI for your economy for the period, calculate the the increase then add this to your original amount.

This tells you how much you need to buy what you could buy for $10000 in 1975. To find how much you could buy today with $10000 of 1975 money is a different calculation.

100/240 X $10 000 = $4166.66 (as costs are now 240% of 75)

Answer 3

in 1975 you could buy a new corvette for 7,000.00 dollars. You couldn't touch one now for 30,000.00

Answer 4

Just an educated guess. $ 25,000.00

Answer 5

$8,000