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Year Capital Purchasing Power CD Interest Rate

The document shows the capital purchasing power, CD interest rate, and real yield over 30 years if $2,500,000 is invested with a 0.04 CD interest rate and 0.03 inflation rate. The purchasing power decreases each year as inflation outpaces the CD interest, and the real yield (purchasing power minus initial amount) becomes negative after 10 years, indicating an overall loss of value.

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sahilku
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48 views

Year Capital Purchasing Power CD Interest Rate

The document shows the capital purchasing power, CD interest rate, and real yield over 30 years if $2,500,000 is invested with a 0.04 CD interest rate and 0.03 inflation rate. The purchasing power decreases each year as inflation outpaces the CD interest, and the real yield (purchasing power minus initial amount) becomes negative after 10 years, indicating an overall loss of value.

Uploaded by

sahilku
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Time 30 yrs

CD rate 0.04
Inflation rate 0.03
Amount available for investment 2500000

Year Capital Purchasing Power CD Interest rate


0 2500000 0.04
1 2427184 0.04
2 2356490 0.04
3 2287854 0.04
4 2221218 0.04
5 2156522 0.04
6 2093711 0.04
7 2032729 0.04
8 1973523 0.04
9 1916042 0.04
10 1860235 0.04
11 1806053 0.04
12 1753450 0.04
13 1702378 0.04
14 1652795 0.04
15 1604655 0.04
16 1557917 0.04
17 1512541 0.04
18 1468487 0.04
19 1425715 0.04
20 1384189 0.04
21 1343873 0.04
22 1304731 0.04
23 1266729 0.04
24 1229834 0.04
25 1194014 0.04
26 1159237 0.04
27 1125473 0.04
28 1092692 0.04
29 1060866 0.04
30 1029967 0.04
Real Yield
100000
97087
94260
91514
88849
86261
83748
81309
78941
76642
74409
72242
70138
68095
66112
64186
62317
60502
58739
57029
55368
53755
52189
50669
49193
47761
46369
45019
43708
42435
41199

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