Inflation

This short program seems appropriate at this time as there is continued talk of the status of INFLATION. In fact, this subject pops up all too often.

As our readers vary a great deal in age, the information presented will cover an inflation period of 45 years which is about as long as many people remain employed at an income generating job.

This program is based on the formula, M=1.06^n where M is the multiplyer that tell you how many of todays dollars it takes to purchase the same item “n” years from now with an average inflation rate of 6% per annum. Just change the digits after the decimal point to use some other average inflation rate, such as .08 for 8%. The 6% is the average inflation rate for the last 20 years, give or take a little. The plotted curve will go off scale at 6% but it will still plot. For a number output use the formula in direct mode as PRINT (1+ % in decimal)^n for the desired number of years.

I got into this problem while working on a program to help estimate a person’s retirement budget and income. It would have been nice to have had such a program available before I retired. Anyway, this inflation multiplyer program is a part of that effort.

 100 PLOT 25,20: DRAW 0,150
 110 PLOT 25,20: DRAW 225,0
 120 PRINT AT  21,15;"YEARS"
 130 PRINT AT 7,0;"M";AT 8,0;"U"
;AT 9,0;"T";AT 10,0;"I";AT 11,0;
"P";AT 12,0;"L";AT 13,0;"Y";AT 1
4,0;"E";AT 15,0;"R"
 140 FOR X=25 TO 228 STEP 4
 150 FOR S=20 TO 22
 170 PLOT X,S
 180 NEXT S: NEXT X
 190 FOR X=25 TO 240 STEP 20
 200 FOR S=20 TO 25
 210 PLOT X,S
 220 NEXT S: NEXT X
 230 FOR Y=20 TO 170 STEP 10
 240 FOR S=25 TO 29
 250 PLOT S,Y
 260 NEXT S: NEXT Y
 270 FOR Y=20 TO 170 STEP 5
 280 FOR S=25 TO 27
 290 PLOT S,Y
 300 NEXT S: NEXT Y
 310 FOR Y=20 TO 170 STEP 50
 320 FOR S=25 TO 32
 330 PLOT S,Y: NEXT S: NEXT Y
 340 PRINT AT 0,1;"15"
 350 PRINT AT 6,1;"10"
 360 PRINT AT 13,1;"5"
 370 PRINT AT 19,1;"0"
 380 FOR N=0 TO 25 STEP 5
 390 PRINT AT 20,N+2;N*2
 400 NEXT N
 410 FOR N=0 TO 46 STEP .2
 420 PLOT 25+4*N,19+10.14*(1.06^
N)
 430 NEXT N