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?

Cet exercice fait partie du cours

Introduction to Financial Concepts in Python

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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.

Exercice interactif pratique

Essayez cet exercice en complétant cet exemple de 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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