Interactive model comparing salary growth against inflation using arithmetic and compound growth formulas

Salary growth vs. inflation β€” interactive model (All values in SGD)

Price growth   Pn = P(1 + r)n
Salary growth   Sn = S(1 + d)n
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Singapore
Moderate inflation
Starting price P ($)$500
Inflation rate r (%)1%
Starting salary S ($)$1,000
Annual raise d (%)1%
Years n1 yr
Price after n years (Pn)$1,629
Salary after n years (Sn)$6,700
Real purchasing power+$5,071
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Venezuela
Hyperinflation scenario
Starting price P ($)$100
Inflation rate r (%)100%
Starting salary S ($)$120
Annual raise d (%)50%
Years n1 yr
Price after n years (Pn)β€”
Salary after n years (Sn)β€”
Real purchasing powerβ€”

Salary vs. price over time

SG salary
SG price
VE salary
VE price
SG β€” salary multiplier
β€”
salary grows by this factor over n years
VE β€” price multiplier
β€”
prices grow by this factor over n years