Q. What is Inflation ?
Ans. A general increase in prices and fall in the purchasing value of money is called INFLATION.
For example if today we have 10,000 Rs and we keep this money in our pocket without any proper planning and investment than the the purchasing value of our money will decreased by span of time which is explained and shown on above picture,
TODAYS 10,000 will be
7,817 after 5 years
6,110 after 10 years
3,733 after 20 years &
2,281 after 30 years
if we assume inflation rate of 5.05%.
(*figures taken on 01-01-2011)
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