# Value of 1986 New Zealand Dollars today

\$100 in 1986

\$262.42 today

The inflation rate in New Zealand between 1986 and today has been 162.42%, which translates into a total increase of \$162.42. This means that 100 dollars in 1986 are equivalent to 262.42 dollars in 2019. In other words, the purchasing power of \$100 in 1986 equals \$262.42 today. The average annual inflation rate has been 2.88%.

## Inflation timeline in New Zealand (1986-2020)

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 (1986-2019) 162.16%
Total Inflation* 162.42%
Annual inflation avg. (1986-2019) 2.96%
Annual inflation avg.* 2.88%
CPI 1986 39.97
CPI 2019 104.79
CPI today* 104.89
\$1 in 1986 \$2.62 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 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 33 years between 1986 and 2019 and the average inflation rate has been 2.8782%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.03)33 = \$262.16

#### 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 1986 was 39.97 and the CPI today is 104.89. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
104.79/39.97
= \$262.16

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1986 \$2.62 dollars today
\$5 dollars in 1986 \$13.12 dollars today
\$10 dollars in 1986 \$26.24 dollars today
\$50 dollars in 1986 \$131.21 dollars today
\$100 dollars in 1986 \$262.42 dollars today
\$500 dollars in 1986 \$1,312.08 dollars today
\$1,000 dollars in 1986 \$2,624.17 dollars today
\$5,000 dollars in 1986 \$13,120.84 dollars today
\$10,000 dollars in 1986 \$26,241.67 dollars today
\$50,000 dollars in 1986 \$131,208.37 dollars today
\$100,000 dollars in 1986 \$262,416.74 dollars today
\$500,000 dollars in 1986 \$1,312,083.69 dollars today
\$1,000,000 dollars in 1986 \$2,624,167.38 dollars today

Period Value
1986 100
1987 118.24
1988 129.58
1989 135.69
1990 145.46
1991 152.51
1992 154
1993 156.04
1994 158.21
1995 162.64
1996 167.39
1997 171.66
1998 173.08
1999 173.71
2000 174.6
2001 181.54
2002 184.84
2003 189.87
2004 192.82
2005 198.03
2006 204.28
2007 209.66
2008 216.33
2009 223.63
2010 228.02
2011 237.19
2012 241.58
2013 243.87
2014 247.83
2015 249.71
2016 249.92
2017 253.26
2018 257.3
2019 262.16
Today 262.42