# Value of 1987 New Zealand Dollars today

\$100 in 1987

\$222.02 today

The inflation rate in New Zealand between 1987 and today has been 122.02%, which translates into a total increase of \$122.02. This means that 100 dollars in 1987 are equivalent to 222.02 dollars in 2019. In other words, the purchasing power of \$100 in 1987 equals \$222.02 today. The average annual inflation rate has been 2.45%.

## Inflation timeline in New Zealand (1987-2020)

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 (1987-2019) 121.72%
Total Inflation* 122.02%
Annual inflation avg. (1987-2019) 2.52%
Annual inflation avg.* 2.45%
CPI 1987 47.26
CPI 2019 104.79
CPI today* 104.93
\$1 in 1987 \$2.22 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 32 years between 1987 and 2019 and the average inflation rate has been 2.4464%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.02)32 = \$221.72

#### 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 1987 was 47.26 and the CPI today is 104.93. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
104.79/47.26
= \$221.72

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1987 \$2.22 dollars today
\$5 dollars in 1987 \$11.1 dollars today
\$10 dollars in 1987 \$22.2 dollars today
\$50 dollars in 1987 \$111.01 dollars today
\$100 dollars in 1987 \$222.02 dollars today
\$500 dollars in 1987 \$1,110.09 dollars today
\$1,000 dollars in 1987 \$2,220.18 dollars today
\$5,000 dollars in 1987 \$11,100.9 dollars today
\$10,000 dollars in 1987 \$22,201.8 dollars today
\$50,000 dollars in 1987 \$111,009.02 dollars today
\$100,000 dollars in 1987 \$222,018.04 dollars today
\$500,000 dollars in 1987 \$1,110,090.2 dollars today
\$1,000,000 dollars in 1987 \$2,220,180.41 dollars today

Period Value
1987 100
1988 109.59
1989 114.76
1990 123.02
1991 128.98
1992 130.25
1993 131.97
1994 133.8
1995 137.55
1996 141.57
1997 145.18
1998 146.38
1999 146.92
2000 147.66
2001 153.54
2002 156.32
2003 160.58
2004 163.08
2005 167.48
2006 172.76
2007 177.32
2008 182.96
2009 189.14
2010 192.84
2011 200.61
2012 204.31
2013 206.25
2014 209.6
2015 211.19
2016 211.37
2017 214.19
2018 217.61
2019 221.72
Today 222.02