One silly little formula worth Trillions
Thank you for providing the initial cost of products in 1900, which is 5 cents. Now, let's calculate the budget for the year 2024 based on a 2 percent annual change from 1900 to 2024:
1. Start with 5 cents in 1900.
2. Apply a 2 percent annual increase.
Let's calculate:
Year 1900: 5 cents
Year 2024 = 5 cents * (1 + 0.02)^124
Calculating this, the budget for 2024 based on your formula is approximately $2.12. Please note that this is a simplified calculation and doesn't take into account various economic factors that can affect inflation or deflation rates.
However the actual market cost of a can of cola didn't change until 1959. Fascinating market trends. Are we following yet?
The idea is if you are able to see what inflation is supposed to be every year since the year 1900 based on say a can of cola, then you will see what inflationary or deflationary pressures need to be adjusted even quarterly based on keeping the dollar to its proper setting. Works best on an excel sheet.
ReplyDeleteGot an easier to follow and seemingly correct response from Google Bard: 68 cents for a van of cola today anyone? But how will restaurants survive? **Annual increase of 2% inflation yearly starting from the year 1900 with the first year as 5 cents:**
ReplyDelete| Year | Price (USD) |
|---|---|
| 1900 | 0.05 |
| 1901 | 0.0506 |
| 1902 | 0.0512 |
| ... | ... |
| 2023 | 0.68 |
**Real inflation or cost of a can of coke over the last hundred and twenty four years:**
This is more difficult to calculate, as there is no single definitive source for the price of a can of Coke over time. However, according to a 2016 article in The Atlantic, the price of a can of Coke in 1900 was about 5 cents, and in 2016 it was about $1.25. This means that the price of a can of Coke increased by about 25 times over a period of 116 years, an average of about 2.1% per year.
However, this is just a rough estimate, as the price of a can of Coke has varied over time and depending on location. For example, in 1945, a can of Coke cost 10 cents in the United States, but only 5 cents in Canada. And in 1970, a can of Coke cost 25 cents in the United States, but only 15 cents in the United Kingdom.
To get a more accurate picture of the real inflation of a can of Coke, we would need to look at price data from a variety of sources over time. However, the above estimate gives us a general idea of how much the price of a can of Coke has increased over the last century and more.
**Note:** The above table is only an example, and the actual prices of a can of Coke may have varied slightly over time.
2.1 percent is perfect, if the numbers are correct.
3.67%
ReplyDeleteUS Inflation Rate (I:USIR)
US Inflation Rate is at 3.67%, compared to 3.18% last month and 8.26% last year. This is higher than the long term average of 3.28%. So if somehow the expected YOY inflation of two percent YOY or QUarterly, apply the perfect inflation versus current inflation and adjust parameters and influencing details as needed…
first response was CHAT GPT, second response was Google Bard and its a can of cola not a van.
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