What will be the value of One Million dollars in terms of present day dollars?

Assuming inflation will be around its historical rate of 3% and 2050 is in 40 years, that would mean that $1m in 2050 is worth only $307k.

My math is $1,000,000/(1.03^40) = $306,556

2 issues here:

1. I have no idea what the formula is that was posted here, but I don't see any number was used to calculate inflation in it.

2. A million dollars given in ANY year is still a million dollars.

I think what you really might be asking is if you had $1MM TODAY, what would it be worth in 2050?

Their is no correct answer for this because we don't know what future inflation will be from tomorrow to 2050.

What we can do is hypothesize about past inflation and project similar numbers in the future.

I have done many reports on this using models used at a major Wall Street firm.

Basically look at it like this:

$1.00 today over 30 years typically has had the buying power of 30 cents or a 70% decrease in the value of the dollar.

$1.00 today over 40 years typically has had the buying power of 10-20 cents or a 80-90% decrease in the value of the dollar.

You have to tell us what inflation is to calculate that.

The equation is FV = PV*(1+i)^41, where FV is future value, PV is value today, and i is the inflation rate, and 41 is the number of years until 2050.

Assuming $1.0m, it's: 1,000,000 = PV*(1+i)^41, which coverts to:

PV = 1,000,000 / [(1+i)^41]

You can put in a few different inflation rates to see the result.

he'll have $1