I am a young adult and have been doing some research into the stock market. The Australian Stock Exchange (ASX) has great online courses which I have been following. I stumbled across a graph which plots the reduced value of $10,000 of savings due to a 3% inflation rate over time. It states that $10,000 will have the value of $5,327 with a 3% inflation rate after 10 years.
I attempted to do the calculation myself as follows which gives a different solution. $10000x(1/1.03)10 = $7,440.94.
If anybody could explain where I have gone wrong in my calculation or if the website has made an error I would be very appreciative.
Thanks in advance.
Submitted May 06, 2017 at 08:15AM by jasonnit http://ift.tt/2qM4JIr
