Inflation Formula
Expression: Future Value = PV × (1 + i)^n
Inflation reduces purchasing power. To maintain today's buying power after n years at inflation rate i, you need PV × (1+i)^n.
Example: ₹5 lakh today at 6% inflation for 15 years
PV = 500,000, i = 0.06, n = 15
FV = 500,000 × (1.06)^15
Result: Need ≈ ₹11,98,278 for same purchasing power