Loading ...If you have experienced that many things cost 20 times more since the gold depeg in 1971 about 50 years, and you guess its 6% to 7%, just put $1000 in the top box, put a zero in the monthly contribution, put 50 years in the length of time slot, and your suspected inflation rate at 6%, put a zero in the variance rate, and put annually in the frequency box and hit calculate box.
The answer is a $1000 product, 50 years later with a 6% inflation rate, will cost you $18,420. In other words everything costs 18.4 times more over 50 years.
https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator
A $2000 cheap car in 1971 at a factor of 18.4 times more should be $36,840 today.
A decent $2500 car from 1971 would equal $46,000 today.
A very good $3,000 1971 Camaro times 18.4 is $55,200.
I always use 20 X to keep it simple. Naturally things that are only 10 X more (your house) are behind the curve. and things 30 times more are over priced above the curve. Note the 1970 to 1980 $1000 flat Dow times 18.4 means the Dow should be 18,400 today but its 32,485. is X 32 times more.