Hoe Do You Work It Out?

[merylpeep]

how do you work out or find how much, say, £1000 was worth in 1980? like saying "that was the equivalent of £10,000 today"?

[merylpeep]

I meant How not Hoe, of course. I'm not a rapper!

[hc4361]

I wouldn't work it out, I'd use this:
http://www.thisismoney.co.uk/money/bills/article-1633409/Historic-inflation-calculator-value-money-changed-1900.html

[chrissa1]

Blimey! My engagement ring was expensive back in 1975.

[ToraToraTora]

yes it's easy to use the link provided by HC. Mathematically it's a case of compouding the future value of the amount starting at the time specified using the RPI figures for say each year of the intervening time. For more accuracy you can do it by the month and it's a simple but dense calculation. A lot easier to use the many calculators out there.

[ToraToraTora]

eg if I had £100 and the RPI was 2% every year for 10 years it would be 100 x 1.02**10 ie £121. but of course the RPI figures are not uniform so you have to compound each step separately, an ideal task for a computer.