The pound in your pocket

System
System Posts: 100,534 🤖 Admin 🤖
edited June 8 in AAT student discussion

Does anyone know how much £1 in 1962 would be worth in today's money?

:roll:

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The pound in your pocket

    Approximately £14.75
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The pound in your pocket

    Crumbs Helen, isn't this to do with those wretched discounted cash flow things we learned back at the tail end of intermediate FRA?!!! :shock:

    Without going into all the nasty calculations and all that, I would hazard a technical guess at sod all... Once this government has had hold of it, that is!

    Why do you ask anyway? I know why this year is so important to you anyway and so assume the two are somehow related! Oops! :wink:

    Robert
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The pound in your pocket
    how much £1 in 1962 would be worth in today's money

    I've never understood this phrase. What does it mean? Is it a function of the retail price index?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The pound in your pocket

    Well, Jamie seems up for a challenge! Did you work it out, cheat or just guess?!!

    Okay what's one pound at todays value worth back in 1962 then, you young 'un?

    Robert
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The pound in your pocket


    To elaborate, I have a £1 premium bond bought for me in 1962.

    I am just curious as to how much someone would have to spend today to make the gift, in £ value.

    Can I have no secrets?

    :roll:

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The pound in your pocket

    Approximately aroundish 1 shilling and 4 pence
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The pound in your pocket


    So, you'd have to spend almost £15 today to be as generous as someone spending £1 in 1962?

    :wink:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The pound in your pocket

    correctumondo! according to the RPI purchasing power - dates ranging from 1264 to present
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The pound in your pocket


    If I'd been given the £1 in 'cash' and put it in a bulk-standard savings account, how much would the balance be today, assuming the interest was re-invested?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The pound in your pocket

    for that i would need to know the rate of interest for at least the 1st few years to run off an average...
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The pound in your pocket



    Can we use current as a guide - as savings interest is pretty low.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The pound in your pocket
    correctumondo! according to the RPI purchasing power - dates ranging from 1264 to present

    From 1264. The year of Simon de Montfort's baronial civil war. Where on earth do you find data going back that far?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The pound in your pocket

    I happen to have studied Historical Economical Expediture and evolution of civil courts of payments dating back to pre-historic times when dinosaurs used to trade claws for women.... and bottled water.

    hehe
    Google is my friend!

    Helen,

    taking a 5% flat saving rate per annum for 45 consecutive years, your £1.00 invested then would today be worth somewhere in the region of £120.00 including all interest calcs. (may not have calced it right but i think I did)

    Gem will probably crucify this theory how I worked it out cos I have no idea how interes rates work..

    What I did..

    £1.00 = £14.75 (thus, ratio = 1/14.75)
    5% of £1.00 = £0.05
    Year 1 yields £0.05 old pennies interest added to starting amount then divided by ratio gives start of year 2 £1.0034 or £14.80 old money
    £14.80 / 20 = 5% which is £0.74 interest. added to start amount give begin amount of year 3 which was £15.54 or £1.054

    this continued for 45 years gave the amount of approx £120.00

    So Gem, I probably got that wrong, but it kept me busy for a while.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The pound in your pocket


    Thanks Jamie.

    I'll try and think up something else for you to do tomorrow!

    Trading claws for women? Now that could prevoke a few interesting responses!

    :twisted:

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