How to calculate PV of a historical figure

T

trg

Registered User
Messages
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Folks,

Looking for a bit of help in getting the PV of €7000 from 2002. i.e. what €7000 in 2002 would be worth now.

Anyone any ideas as to the best rate to use in calculation? Have been looking around the CSO website without finding anything definitive

Cheers in advance
 
Do you mean what would the purchasing power of €1 from 2002 be today?

I presume that the CPI will estimate this for you?

[broken link removed]

CPI January 2002: 99.8
CPI September 2011: 118.8

So (I think...but am open to correction!)

(€7000 / 118.8) x 99.8 = €5880
 
Is that not more or less the same thing? I did use the word "estimate" for a reason...
 
Yeah, there was a pun on "kine" I just had to get in

However your answers seemed to go the wrong way, if you take my meaning

When I input a figure of 7,000 into the Dollar calculator (and I'm assuming this is a World Currency Calculator) I get

"$7,000 in 2002 has the same buying power as $8,8,28.37 today."

Maybe there is a contradiction in terms there, but that's what I expected to hear.

Your figure seems to suggest the amount the currency may have devalued by, as opposed to what would be an equivalent "buy".
 
onq said:
However your answers seemed to go the wrong way, if you take my meaning
Click to expand...
Maybe you're right but ultimately I think that CPI is the key thing here for doing what the original poster wants to do?
Your figure seems to suggest the amount the currency may have devalued by, as opposed to what would be an equivalent "buy".
Click to expand...
My thinking was that, for example, in 2002 I could buy, say, a take away coffee for €2 but today it might cost me €3.
 
Thanks very much for responses. To clarify I am attempting to find out what a €7000 take away coffee in 2002 would cost now. I would assume it would go up also.

Using the CPI could one say that (118.80-99.80)/99.80 = 19% therefore the cost now would be €7000 * 119% = €8,332.67?
 
trg said:
To clarify I am attempting to find out what a €7000 take away coffee in 2002 would cost now.
Click to expand...

I know we were being ripped off during the Celtic Tiger, but that was always a ridiculous price to pay for a coffee - especially a takeaway.

The only thing that matters is the market price now. I don't buy takeaway coffees but I assume that they are around €2.

Brendan
 
I am informed by people who say they buy them that they can cost as much as €3.50.

I am informed by people who looked into selling them that the cost of the coffee is 7 cent.

You're paying for the EXPERIENCE of drinking coffee, + staff, premises, heat, light and vast profits!

Haven't heard that coffees were selling for SEVEN THOUSAND EURO - I'd stick to the tea for a while!
 
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