Historic Value of Money

[anonymous-user]

Does anyone have a link to a site, or the brains to work out how much £20,000,000 in 1985 would be worth today?

[PD9]

MRSNEAK said:

Does anyone have a link to a site, or the brains to work out how much £20,000,000 in 1985 would be worth today?

Ohh what have you come onto??

[theboyfold]

Is this what you are looking for?

http://www.measuringworth.com/ukcompare/

[bluevelvet]

Depends on where it was invested and obviously rate of return....inflation rate, stock market, deposit account, compounding etc...

Just as a guideline if you assume 5% rate with, annual compounding (will be higher if monthly)

1.05^23 = 3.071524

So 20,000,000 would be 61,430,475.12.....23 years later.

Edit to add, you could look at it this way.....6,511,425.60 in 1985 would equate to 20 million today if discounted at 5% annually.

Edited by bluevelvet on Wednesday 10th December 11:39

[robinhood21]

About ten knighthoods I'd say.

[NoelWatson]

MRSNEAK said:

Does anyone have a link to a site, or the brains to work out how much £20,000,000 in 1985 would be worth today?

http://www.statistics.gov.uk/downloads/theme_economy/RP02.pdf

[bigmac146]

^^^^

Or 20 Lordships

[plasticpig]

9800000 according to my caculations (using RPI data)

[Neil_H]

Roughly worth £38,000,000 in today's money, assuming it wasn't invested and was just sitting 'under your mattress'.

[bluevelvet]

Rpi is all very well, but is compiled by the govt, therefore bias toward understatement and effect of a change in the basket....e.g price of a 40" plasma 10 years ago?.....interest rates are usually a premium for investment or risk on top of the inflation rate, if you only work on covering an understated index, you have note received any benefit from the capital sum.

[plasticpig]

bluevelvet said:

Rpi is all very well, but is compiled by the govt, therefore bias toward understatement and effect of a change in the basket....e.g price of a 40" plasma 10 years ago?.....interest rates are usually a premium for investment or risk on top of the inflation rate, if you only work on covering an understated index, you have note received any benefit from the capital sum.

I assumed he kept it stuffed under his mattress

[NoelWatson]

bluevelvet said:

Rpi is all very well, but is compiled by the govt, therefore bias toward understatement and effect of a change in the basket....e.g price of a 40" plasma 10 years ago?.....interest rates are usually a premium for investment or risk on top of the inflation rate, if you only work on covering an understated index, you have note received any benefit from the capital sum.

Base rate has averaged 7.455% since 31/01/85

[bluevelvet]

Tks Noel,

On that basis if you assume you could invest £20m @ base....annual compounding would give £104,530,361.20 today.

Or the equivalent today of £20m discounted back at base average, over that time would be £3,826,639.41 in 1985.

Good game this isn't it?