Present and Future Values

When projecting currency values into the future, it will often be appropriate to adjust the values for inflation. This can be done in a straightforward way by using GoldSim's built-in financial compounding functions. In particular, the "ptof" function converts a present value to a future value given a rate per period and the number of periods. For example, if the current cost for a particular service was 1000 $/yr, and you assumed an annual inflation rate of 4%, then the inflated cost at any time in the future could be computed as:

1000 $/yr * ptof(4%, #periods)

The output of this expression is the inflated cost of 1000 $/yr at the future time. The input "#periods" represents the number of periods from now until the future time, given that the period length is based on the inflation rate. If you use an annual inflation rate, then the period length should be 1 year, for example.

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