The inflation rate in the United States between 1989 and 2006 was 62.62%, which translates into a total increase of $3,944.91. This means that 6,300 dollars in 1989 are equivalent to 10,244.91 dollars in 2006. In other words, the purchasing power of $6,300 in 1989 equals $10,244.91 in 2006. The average annual inflation rate between these periods was 2.9%.
The following chart depicts the equivalence of $6,300 due to compound 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 (USD) 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.
The following table contains relevant indicators:
| Indicator | Value |
|---|---|
| Cumulative inflation from 1989 to 2006 | 62.62% |
| Avg. Annual inflation from 1989 to 2006 | 2.9% |
| CPI 1989 | 123.97 |
| CPI 2006 | 201.59 |
There are several ways to calculate the time value of money. Depending on the data available, results can be obtained by using the Consumer Price Index (CPI) formula or the compound interest formula.
When we have both the start and end years, we can use the following formula:
To obtain the values equivalent in buying power between 1989 and 2006, use the corresponding CPI values:
Given that money changes with time as a result of an inflation rate that acts as compound interest, we can use the following formula: FV = PV × (1 + i)n, where:
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 $6,300 worth today. There are 17 years between 1989 and 2006 and the average inflation rate was 2.9015%. Therefore, we can resolve the formula like this:
| Initial Value | Equivalent value | |
|---|---|---|
| $1 dollar in 1989 | → | $1.63 dollars in 2006 |
| $5 dollars in 1989 | → | $8.13 dollars in 2006 |
| $10 dollars in 1989 | → | $16.26 dollars in 2006 |
| $50 dollars in 1989 | → | $81.31 dollars in 2006 |
| $100 dollars in 1989 | → | $162.62 dollars in 2006 |
| $500 dollars in 1989 | → | $813.09 dollars in 2006 |
| $1,000 dollars in 1989 | → | $1,626.18 dollars in 2006 |
| $5,000 dollars in 1989 | → | $8,130.88 dollars in 2006 |
| $10,000 dollars in 1989 | → | $16,261.76 dollars in 2006 |
| $50,000 dollars in 1989 | → | $81,308.82 dollars in 2006 |
| $100,000 dollars in 1989 | → | $162,617.64 dollars in 2006 |
| $500,000 dollars in 1989 | → | $813,088.2 dollars in 2006 |
| $1,000,000 dollars in 1989 | → | $1,626,176.39 dollars in 2006 |
| Cumulative inflation 1989-2006 | 62.62% |
| Avg. annual inflation 1989-2006 | 2.9% |
| CPI 1989 | 123.97 |
| CPI 2006 | 201.59 |
| Period | Value |
|---|---|
| 1989 | 6,300 |
| 1990 | 6,640.07 |
| 1991 | 6,921.28 |
| 1992 | 7,130.91 |
| 1993 | 7,341.39 |
| 1994 | 7,532.81 |
| 1995 | 7,744.14 |
| 1996 | 7,971.13 |
| 1997 | 8,157.48 |
| 1998 | 8,284.1 |
| 1999 | 8,465.36 |
| 2000 | 8,751.22 |
| 2001 | 8,998.55 |
| 2002 | 9,141.27 |
| 2003 | 9,348.78 |
| 2004 | 9,599.07 |
| 2005 | 9,924.74 |
| 2006 | 10,244.91 |
All available years
Today's value of US dollars by year:
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