medengconfused
New member
Rs. 1,00,000 invested at 12% CAGR for 15 years is going to become around Rs. 5,50,000.
But how to calculate such that we can see the final amount in today’s value by omitting inflation?
If inflation is 7% pa, do we then say it’s growing at a CAGR of 5% from a pure profit point of view (ignoring taxes)?
So then can we say that in 15 years, from the purchasing power standpoint of today, this 1,00,000 becomes 2,10,000 at 5% cagr? Is this a flawed calculation?
Disclaimer: Clearly, I’m horrible at maths. So be nice.
Edit: turns out, I’m not that horrible at maths
But how to calculate such that we can see the final amount in today’s value by omitting inflation?
If inflation is 7% pa, do we then say it’s growing at a CAGR of 5% from a pure profit point of view (ignoring taxes)?
So then can we say that in 15 years, from the purchasing power standpoint of today, this 1,00,000 becomes 2,10,000 at 5% cagr? Is this a flawed calculation?
Disclaimer: Clearly, I’m horrible at maths. So be nice.
Edit: turns out, I’m not that horrible at maths