The pound in your pocket

[Baggybooks]

Does anyone know how much £1 in 1962 would be worth in today's money?

:roll:

Approximately £14.75

[blobbyh]

Crumbs Helen, isn't this to do with those wretched discounted cash flow things we learned back at the tail end of intermediate FRA?!!! :shock:

Without going into all the nasty calculations and all that, I would hazard a technical guess at sod all... Once this government has had hold of it, that is!

Why do you ask anyway? I know why this year is so important to you anyway and so assume the two are somehow related! Oops! :wink:

Robert

[GJP104]

how much £1 in 1962 would be worth in today's money

I've never understood this phrase. What does it mean? Is it a function of the retail price index?

[blobbyh]

Well, Jamie seems up for a challenge! Did you work it out, cheat or just guess?!!

Okay what's one pound at todays value worth back in 1962 then, you young 'un?

Robert

[Baggybooks]

To elaborate, I have a £1 premium bond bought for me in 1962.

I am just curious as to how much someone would have to spend today to make the gift, in £ value.

Can I have no secrets?

:roll:

Approximately aroundish 1 shilling and 4 pence

[Baggybooks]

So, you'd have to spend almost £15 today to be as generous as someone spending £1 in 1962?

:wink:

correctumondo! according to the RPI purchasing power - dates ranging from 1264 to present

[Baggybooks]

If I'd been given the £1 in 'cash' and put it in a bulk-standard savings account, how much would the balance be today, assuming the interest was re-invested?

for that i would need to know the rate of interest for at least the 1st few years to run off an average...

[Baggybooks]

Can we use current as a guide - as savings interest is pretty low.

[GJP104]

correctumondo! according to the RPI purchasing power - dates ranging from 1264 to present

From 1264. The year of Simon de Montfort's baronial civil war. Where on earth do you find data going back that far?

I happen to have studied Historical Economical Expediture and evolution of civil courts of payments dating back to pre-historic times when dinosaurs used to trade claws for women.... and bottled water.

hehe
Google is my friend!

Helen,

taking a 5% flat saving rate per annum for 45 consecutive years, your £1.00 invested then would today be worth somewhere in the region of £120.00 including all interest calcs. (may not have calced it right but i think I did)

Gem will probably crucify this theory how I worked it out cos I have no idea how interes rates work..

What I did..

£1.00 = £14.75 (thus, ratio = 1/14.75)
5% of £1.00 = £0.05
Year 1 yields £0.05 old pennies interest added to starting amount then divided by ratio gives start of year 2 £1.0034 or £14.80 old money
£14.80 / 20 = 5% which is £0.74 interest. added to start amount give begin amount of year 3 which was £15.54 or £1.054

this continued for 45 years gave the amount of approx £120.00

So Gem, I probably got that wrong, but it kept me busy for a while.

[Baggybooks]

Thanks Jamie.

I'll try and think up something else for you to do tomorrow!

Trading claws for women? Now that could prevoke a few interesting responses!

:twisted: