Amount 1000; annual inflation 10%; 2 years
Future cost 1210; purchasing power approximately 826.446281; cumulative 21%Two successive 10% increases multiply by 1.1 × 1.1 = 1.21 rather than adding to 20%.
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Explore how a constant rate of price change affects a budget. Future equivalent cost answers how much money you would need later to buy the same basket. Purchasing power answers how much today’s unchanged amount would buy later, expressed in today’s prices. No historical inflation series is fetched.
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Two successive 10% increases multiply by 1.1 × 1.1 = 1.21 rather than adding to 20%.
Illustrative default-input result. Two-position average price before broker fees and taxes; target shares estimate assumes stable purchase price.
No. Two-position average price before broker fees and taxes; target shares estimate assumes stable purchase price.
Net receipts are 1140. The 140 gain is 14% of the initial 1000, and a 12-month period needs no annual adjustment.
Estimate annual dividend cash flow using price per share, holdings, payment per share and annual distribution frequency. Specify your own illustrative withholding percentage.