Inflation-adjusted net worth

By saving 30% per year, your simulation shows that you can accumulate $896,962.66. Not quite a millionaire, but not bad at all!

For the sake of simplicity, let's assume you were able to save $900,000 by following your budget.

But what if you retire 15 years from now? What is $900,000 going to be truly worth 15 years from now?

This exercise is part of the course

Introduction to Financial Concepts in Python

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Exercise instructions

Set your future_net_worth equal to $900,000.
Set the annual inflation rate equal to 2.5%. Do not compound inflation monthly.
Using .pv(), calculate the present value of your net worth 15 years from now.

Hands-on interactive exercise

Have a go at this exercise by completing this sample code.

import numpy as np

# Set your future net worth
future_net_worth = ____

# Set the annual inflation rate to 2.5%
annual_inflation = ____

# Calculate the present value of your terminal wealth over 15 years
inflation_adjusted_net_worth = ____(rate=annual_inflation, nper=____, pmt=0, fv=-1*____)
print("Your inflation-adjusted net worth: $" + str(round(inflation_adjusted_net_worth, 2)))

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