# Value of 1989 New Zealand Dollars today

\$100 in 1989

\$199.81 in 2021

The inflation rate in New Zealand between 1989 and today has been 99.81%, which translates into a total increase of \$99.81. This means that 100 dollars in 1989 are equivalent to 199.81 dollars in 2021. In other words, the purchasing power of \$100 in 1989 equals \$199.81 today. The average annual inflation rate has been 2.12%.

## Inflation timeline in New Zealand (1989-2021)

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 (1989-2021) 99.62%
Total Inflation* 99.81%
Annual inflation avg. (1989-2021) 2.18%
Annual inflation avg.* 2.12%
CPI 1989 54.24
CPI 2021 108.26
CPI today* 108.37
\$1 in 1989 \$2 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 32 years between 1989 and 2021 and the average inflation rate has been 2.1197%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.02)32 = \$199.62

#### 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 1989 was 54.24 and the CPI today is 108.37. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
108.26/54.24
= \$199.62

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1989 \$2 dollars today
\$5 dollars in 1989 \$9.99 dollars today
\$10 dollars in 1989 \$19.98 dollars today
\$50 dollars in 1989 \$99.9 dollars today
\$100 dollars in 1989 \$199.81 dollars today
\$500 dollars in 1989 \$999.04 dollars today
\$1,000 dollars in 1989 \$1,998.08 dollars today
\$5,000 dollars in 1989 \$9,990.38 dollars today
\$10,000 dollars in 1989 \$19,980.76 dollars today
\$50,000 dollars in 1989 \$99,903.81 dollars today
\$100,000 dollars in 1989 \$199,807.62 dollars today
\$500,000 dollars in 1989 \$999,038.1 dollars today
\$1,000,000 dollars in 1989 \$1,998,076.2 dollars today

Period Value
1989 100
1990 107.2
1991 112.4
1992 113.5
1993 115
1994 116.6
1995 119.86
1996 123.36
1997 126.51
1998 127.56
1999 128.03
2000 128.68
2001 133.79
2002 136.22
2003 139.93
2004 142.11
2005 145.95
2006 150.55
2007 154.52
2008 159.44
2009 164.82
2010 168.05
2011 174.81
2012 178.04
2013 179.73
2014 182.65
2015 184.04
2016 184.19
2017 186.65
2018 189.63
2019 193.21
2020 196.79
2021 199.62
Today 199.81