# Value of 1977 New Zealand Dollars today

\$100 in 1977

\$785.55 in 2019

The inflation rate in New Zealand between 1977 and today has been 685.55%, which translates into a total increase of \$685.55. This means that 100 dollars in 1977 are equivalent to 785.55 dollars in 2019. In other words, the purchasing power of \$100 in 1977 equals \$785.55 today. The average annual inflation rate has been 4.91%.

## Inflation timeline in New Zealand (1977-2019)

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 (1977-2019) 685.01%
Total Inflation* 685.55%
Annual inflation avg. (1977-2019) 5.03%
Annual inflation avg.* 4.91%
CPI 1977 13.35
CPI 2019 104.79
CPI today* 104.86
\$1 in 1977 \$7.85 in 2019

* 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 in 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 42 years between 1977 and 2019 and the average inflation rate has been 4.9103%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.05)42 = \$785.01

#### 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 1977 was 13.35 and the CPI today is 104.86. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
104.79/13.35
= \$785.01

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1977 \$7.86 dollars today
\$5 dollars in 1977 \$39.28 dollars today
\$10 dollars in 1977 \$78.56 dollars today
\$50 dollars in 1977 \$392.78 dollars today
\$100 dollars in 1977 \$785.55 dollars today
\$500 dollars in 1977 \$3,927.75 dollars today
\$1,000 dollars in 1977 \$7,855.5 dollars today
\$5,000 dollars in 1977 \$39,277.51 dollars today
\$10,000 dollars in 1977 \$78,555.03 dollars today
\$50,000 dollars in 1977 \$392,775.15 dollars today
\$100,000 dollars in 1977 \$785,550.29 dollars today
\$500,000 dollars in 1977 \$3,927,751.47 dollars today
\$1,000,000 dollars in 1977 \$7,855,502.94 dollars today

Period Value
1977 100
1978 115.32
1979 126.97
1980 147.96
1981 171.83
1982 198.81
1983 229.22
1984 237.47
1985 259.79
1986 299.45
1987 354.06
1988 388.02
1989 406.31
1990 435.56
1991 456.69
1992 461.16
1993 467.25
1994 473.75
1995 487.02
1996 501.23
1997 514.02
1998 518.29
1999 520.18
2000 522.83
2001 543.61
2002 553.49
2003 568.56
2004 577.4
2005 592.99
2006 611.7
2007 627.81
2008 647.8
2009 669.67
2010 682.78
2011 710.27
2012 723.39
2013 730.26
2014 742.13
2015 747.75
2016 748.38
2017 758.37
2018 770.46
2019 785.01
Today 785.55