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OT: Inflation

2K views 9 replies 8 participants last post by  Sgt. Mike 
#1 ·
Was at a Whataburger yesterday, hamburger was $2.39. In the store they had a photo of 1st Whataburger in 1950 in Corpus Christi, TX. In the photo a hamburger was $.35.

Question: What is the annual inflation rate for 57 yrs. Is it 12%?
 
#4 ·
$4.00 in 1950 would have the same buying power as $33.60 in 2007.

As an aside, I've long maintained that trapshooting is a bargain, relative to inflation. In 1947, the year I was born, the first 100 targets cost $5.00 at the Michigan State Shoot, including ATA and MTA fees. That would equal $45.38 in 2007 dollars. In 1958, the first 100 targets cost $8.50, equivalent to $59.53 in 2007! The first 100 targets will actually cost just $29.00 at the 2007 Michigan State shoot. The cost of shooting at the MTA has risen at only half the rate of inflation for the last 50 years.
 
#8 ·
To inflate $0.35 to $2.35 over 57 years, the required rate depends on how the prices are compounded. If compounded annualy, the required rate is slightly over 3.4%. If compounded continuously, the required rate is slightly under 3.4%. Any other compounding scheme (quarterly, monthly, daily, ...) at a fixed rate would fall somewhere in between, so let's call it good at 3.4%.

How does one get these numbers?

Annual: exp((ln(2.39/.35))/57)-1

Continuous: (ln(2.39/.35))/57
 
#9 ·
stokin,

we didn't have doubles or big macs or double quarter pounders. look at photos of men and women in the 1960's. How many big guts or butts did you see then? Maybe we should have stayed with the singles....hmmmm?
 
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