In order to see the effects of inflation, fill out the following spreadsheet given that the compound annual average rate of inflation has been 3 percent. Annual inflation rate 3%
Cumulative inflation after 10 years
Value of $1 after 10 years
Cumulative inflation after 20 years
Value of $1 after 20 years
Cumulative inflation after 30 years
Value of $1 after 30 years
Cumulative inflation after 40 years
Value of $1 after 40 years
Jones, Charles P.; Jensen, Gerald R.. Investments: Analysis and Management, 13th Edition (Page 572). Wiley. Kindle Edition.