The compounding effect of inflation would account for 92.15% of returns ($2,421.53) during this period. In order to evaluate the real return on our investment, we must calculate the return with inflation taken into account. These numbers are not inflation adjusted, so they are considered nominal. This is a return on investment of 262,677.57%, with an absolute return of $2,626.78 on top of the original $1. ![]() To help put this inflation into perspective, if we had invested $1 in the S&P 500 index in 1950, our investment would be nominally worth approximately $2,627.78 in 2023. As noted above, this yearly inflation rate compounds to produce an overall price difference of 1,174.07% over 73 years. The average inflation rate of 3.55% has a compounding effect between 19. In Canada, CA$1.00 in 1950 would be equivalent to CA$12.65 in 2023, an absolute change of CA$11.65 and a cumulative change of 1,164.70%. For comparison, in the UK £1.00 in 1950 would be equivalent to £42.26 in 2023, an absolute change of £41.26 and a cumulative change of 4,125.68%. Inflation can also vary widely by country. Note that some locations showing 0% inflation may have not yet reported latest data. Houston, Texas experienced the lowest rate of inflation during the 73 years between 19 (3.39%). San Francisco, California experienced the highest rate of inflation during the 73 years between 19 (3.82%).
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