jimbocoin on Nostr: Ever wanted to calculate the inflation rate of something quickly? Here’s how! ...
Ever wanted to calculate the inflation rate of something quickly? Here’s how!
(Requirements: a calculator with a 1/x button and an x^y button, like the iPhone calculator app in wide mode).
Inputs:
• start price
• final price
• years between
Procedure:
• Enter the final price
• Hit ➗
• Enter the start price
• Hit 🟰
• Hit the “x^y” button
• Enter the years
• Hit the “1/x” button.
• Hit 🟰
At this point, you’re looking at the proportional value for annualized inflation. So 1.25 means +25%, etc.
That’s it! This is a memorizable procedure once you’ve done it a few times.
Example: Suppose a home is listed for $700k, and was last sold for $500k five years ago.
• Enter 7️⃣0️⃣0️⃣0️⃣0️⃣0️⃣
• Hit ➗
• Enter 5️⃣0️⃣0️⃣0️⃣0️⃣0️⃣
• Hit 🟰 (calculator reads 1.4)
• Hit “x^y” button
• Enter 5️⃣
• Hit “1/x” button (calculator reads 0.2)
• Hit 🟰
Final result: 1.069610…
Converted to percentage: +6.96%
So the hypothetical house in question has appreciated at a compound annual growth rate (CAGR) of about 7%. Considering the money supply increases by 8-12% per year, it is underperforming slightly, but still a decent store of value. #math
Published at
2024-09-19 16:13:14Event JSON
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"content": "Ever wanted to calculate the inflation rate of something quickly? Here’s how!\n\n(Requirements: a calculator with a 1/x button and an x^y button, like the iPhone calculator app in wide mode).\n\nInputs:\n• start price\n• final price\n• years between\n\nProcedure:\n• Enter the final price\n• Hit ➗\n• Enter the start price\n• Hit 🟰\n• Hit the “x^y” button\n• Enter the years\n• Hit the “1/x” button.\n• Hit 🟰\n\nAt this point, you’re looking at the proportional value for annualized inflation. So 1.25 means +25%, etc.\n\nThat’s it! This is a memorizable procedure once you’ve done it a few times.\n\nExample: Suppose a home is listed for $700k, and was last sold for $500k five years ago.\n\n• Enter 7️⃣0️⃣0️⃣0️⃣0️⃣0️⃣\n• Hit ➗\n• Enter 5️⃣0️⃣0️⃣0️⃣0️⃣0️⃣\n• Hit 🟰 (calculator reads 1.4)\n• Hit “x^y” button\n• Enter 5️⃣\n• Hit “1/x” button (calculator reads 0.2)\n• Hit 🟰\n\nFinal result: 1.069610…\n\nConverted to percentage: +6.96%\n\nSo the hypothetical house in question has appreciated at a compound annual growth rate (CAGR) of about 7%. Considering the money supply increases by 8-12% per year, it is underperforming slightly, but still a decent store of value. #math https://image.nostr.build/3e0488f549161f2492d73f96cbb5e19427d5417bc18702bb8b6eaf4b693cbe13.jpg ",
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