Appreciation and Inflation (HSC SSCE Mathematics Standard): Flashcards

When assets increase in value over time

$FV = PV(1 + r)^n$

Future value of the item

Present value of the item

Rate per period (as decimal)

Number of compounding time periods

When cost of goods and services rises over time

Consumer Price Index (CPI)

2% to 3%

Spending power decreases