# Value of 1983 New Zealand Dollars today

\$100 in 1983

\$354.16 in 2021

The inflation rate in New Zealand between 1983 and today has been 254.16%, which translates into a total increase of \$254.16. This means that 100 dollars in 1983 are equivalent to 354.16 dollars in 2021. In other words, the purchasing power of \$100 in 1983 equals \$354.16 today. The average annual inflation rate has been 3.3%.

## Inflation timeline in New Zealand (1983-2021)

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 (1983-2021) 253.83%
Total Inflation* 254.16%
Annual inflation avg. (1983-2021) 3.38%
Annual inflation avg.* 3.3%
CPI 1983 30.6
CPI 2021 108.26
CPI today* 108.36
\$1 in 1983 \$3.54 in 2021

* 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 38 years between 1983 and 2021 and the average inflation rate has been 3.2956%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.03)38 = \$353.83

#### 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 1983 was 30.6 and the CPI today is 108.36. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.26/30.6
= \$353.83

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1983 \$3.54 dollars today
\$5 dollars in 1983 \$17.71 dollars today
\$10 dollars in 1983 \$35.42 dollars today
\$50 dollars in 1983 \$177.08 dollars today
\$100 dollars in 1983 \$354.16 dollars today
\$500 dollars in 1983 \$1,770.79 dollars today
\$1,000 dollars in 1983 \$3,541.58 dollars today
\$5,000 dollars in 1983 \$17,707.89 dollars today
\$10,000 dollars in 1983 \$35,415.79 dollars today
\$50,000 dollars in 1983 \$177,078.94 dollars today
\$100,000 dollars in 1983 \$354,157.88 dollars today
\$500,000 dollars in 1983 \$1,770,789.42 dollars today
\$1,000,000 dollars in 1983 \$3,541,578.83 dollars today

Period Value
1983 100
1984 103.6
1985 113.34
1986 130.64
1987 154.46
1988 169.28
1989 177.26
1990 190.02
1991 199.24
1992 201.19
1993 203.84
1994 206.68
1995 212.47
1996 218.67
1997 224.25
1998 226.11
1999 226.94
2000 228.09
2001 237.16
2002 241.47
2003 248.04
2004 251.9
2005 258.7
2006 266.86
2007 273.89
2008 282.61
2009 292.15
2010 297.87
2011 309.86
2012 315.59
2013 318.59
2014 323.76
2015 326.22
2016 326.49
2017 330.85
2018 336.12
2019 342.47
2020 348.82
2021 353.83
Today 354.16