Appreciation and Inflation (HSC SSCE Mathematics Standard): Flashcards

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Appreciation and Inflation
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Appreciation definition

Assets increasing in value over time

Inflation definition

Rise in prices of goods and services over time

Growth type: appreciation & inflation

Compound growth

Appreciation/inflation formula

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

FVFV in formula FV=PV(1+r)nFV = PV(1 + r)^n

Future value

PVPV in formula FV=PV(1+r)nFV = PV(1 + r)^n

Present value

rr in formula FV=PV(1+r)nFV = PV(1 + r)^n

Rate per period (as decimal)

nn in formula FV=PV(1+r)nFV = PV(1 + r)^n

Number of time periods

Reserve Bank Australia inflation target

2% to 3% per annum

Consumer Price Index (CPI) measures

Inflation by tracking fixed basket of goods prices

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