# Value of 1974 New Zealand Dollars today

\$100 in 1974

\$1,204.79 in 2020

The inflation rate in New Zealand between 1974 and today has been 1,104.79%, which translates into a total increase of \$1,104.79. This means that 100 dollars in 1974 are equivalent to 1,204.79 dollars in 2020. In other words, the purchasing power of \$100 in 1974 equals \$1,204.79 today. The average annual inflation rate has been 5.44%.

## Inflation timeline in New Zealand (1974-2020)

The following chart depicts the equivalence of \$100 throughout the years due to inflation and CPI changes. All values are equivalent in terms of purchasing power, which means that for each year the same goods or services could be bought with the indicated amount of money.

All calculations are performed in the local currency (NZD) and using 6 decimal digits. Results show only up to 2 decimal digits to favour readability. Inflation data is provided by governments and international institutions on a monthly basis. Today's values were obtained by estimating figures from recent trends.

The following table contains relevant indicators:

Indicator Value
Total Inflation (1974-2020) 1,104.1%
Total Inflation* 1,104.79%
Annual inflation avg. (1974-2020) 5.56%
Annual inflation avg.* 5.44%
CPI 1974 8.86
CPI 2020 106.73
CPI today* 106.79
\$1 in 1974 \$12.04 in 2020

* Values extrapolated from the last official data to obtain today's values.

## How to calculate today's value of money after inflation?

There are several ways to calculate the time value of money. Depending on the data available, results can be obtained by using the compound interest formula or the Consumer Price Index (CPI) formula.

#### Using the compound interest formula

Given that money changes with time as a result of an inflation rate that acts as a compound interest, the following formula can be used: FV = PV (1 + i)n, where:

• FV: Future Value
• PV: Present Value
• i: Interest rate (inflation)
• n: Number of times the interest is compounded (i.e. # of years)

In this case, the future value represents the final amount obtained after applying the inflation rate to our initial value. In other words, it indicates how much are \$100 worth today. There are 46 years between 1974 and 2020 and the average inflation rate has been 5.4382%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.05)46 = \$1,204.1

#### Using the CPI formula

When the CPI for both start and end years is known, the following formula can be used:

Final value = Initial value *
CPI final/CPI initial

In this case, the CPI in 1974 was 8.86 and the CPI today is 106.79. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
106.73/8.86
= \$1,204.1

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1974 \$12.05 dollars today
\$5 dollars in 1974 \$60.24 dollars today
\$10 dollars in 1974 \$120.48 dollars today
\$50 dollars in 1974 \$602.39 dollars today
\$100 dollars in 1974 \$1,204.79 dollars today
\$500 dollars in 1974 \$6,023.93 dollars today
\$1,000 dollars in 1974 \$12,047.87 dollars today
\$5,000 dollars in 1974 \$60,239.34 dollars today
\$10,000 dollars in 1974 \$120,478.67 dollars today
\$50,000 dollars in 1974 \$602,393.37 dollars today
\$100,000 dollars in 1974 \$1,204,786.73 dollars today
\$500,000 dollars in 1974 \$6,023,933.65 dollars today
\$1,000,000 dollars in 1974 \$12,047,867.3 dollars today

Period Value
1974 100
1975 112.55
1976 130.22
1977 150.59
1978 173.67
1979 191.21
1980 222.82
1981 258.77
1982 299.39
1983 345.19
1984 357.61
1985 391.23
1986 450.95
1987 533.2
1988 584.34
1989 611.88
1990 655.93
1991 687.75
1992 694.48
1993 703.66
1994 713.45
1995 733.42
1996 754.83
1997 774.09
1998 780.51
1999 783.37
2000 787.35
2001 818.65
2002 833.52
2003 856.22
2004 869.53
2005 893.01
2006 921.18
2007 945.45
2008 975.56
2009 1,008.48
2010 1,028.24
2011 1,069.63
2012 1,089.39
2013 1,099.73
2014 1,117.61
2015 1,126.08
2016 1,127.02
2017 1,142.07
2018 1,160.28
2019 1,182.19
2020 1,204.1
Today 1,204.79