# Value of 1979 New Zealand Dollars today

\$100 in 1979

\$629.93 in 2020

The inflation rate in New Zealand between 1979 and today has been 529.93%, which translates into a total increase of \$529.93. This means that 100 dollars in 1979 are equivalent to 629.93 dollars in 2020. In other words, the purchasing power of \$100 in 1979 equals \$629.93 today. The average annual inflation rate has been 4.48%.

## Inflation timeline in New Zealand (1979-2020)

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 (1979-2020) 529.73%
Total Inflation* 529.93%
Annual inflation avg. (1979-2020) 4.59%
Annual inflation avg.* 4.48%
CPI 1979 16.95
CPI 2020 106.73
CPI today* 106.76
\$1 in 1979 \$6.3 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 41 years between 1979 and 2020 and the average inflation rate has been 4.4794%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.04)41 = \$629.73

#### 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 1979 was 16.95 and the CPI today is 106.76. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
106.73/16.95
= \$629.73

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1979 \$6.3 dollars today
\$5 dollars in 1979 \$31.5 dollars today
\$10 dollars in 1979 \$62.99 dollars today
\$50 dollars in 1979 \$314.96 dollars today
\$100 dollars in 1979 \$629.93 dollars today
\$500 dollars in 1979 \$3,149.65 dollars today
\$1,000 dollars in 1979 \$6,299.29 dollars today
\$5,000 dollars in 1979 \$31,496.46 dollars today
\$10,000 dollars in 1979 \$62,992.93 dollars today
\$50,000 dollars in 1979 \$314,964.64 dollars today
\$100,000 dollars in 1979 \$629,929.28 dollars today
\$500,000 dollars in 1979 \$3,149,646.38 dollars today
\$1,000,000 dollars in 1979 \$6,299,292.75 dollars today

Period Value
1979 100
1980 116.53
1981 135.33
1982 156.58
1983 180.53
1984 187.03
1985 204.61
1986 235.84
1987 278.86
1988 305.6
1989 320.01
1990 343.05
1991 359.69
1992 363.21
1993 368.01
1994 373.13
1995 383.57
1996 394.77
1997 404.84
1998 408.2
1999 409.69
2000 411.78
2001 428.15
2002 435.93
2003 447.8
2004 454.75
2005 467.03
2006 481.77
2007 494.46
2008 510.21
2009 527.43
2010 537.76
2011 559.41
2012 569.74
2013 575.15
2014 584.5
2015 588.93
2016 589.42
2017 597.29
2018 606.81
2019 618.27
2020 629.73
Today 629.93