As you have seen in this chapter, a dollar today does not have the same value as a dollar in the future or a dollar received in the past. At the time of his death in 1937, John D. Rockefeller was estimated to be worth $1.4 billion.
Using the calculator available at www.usinflationcalculator.com
1) How much would Rockefeller's fortune be worth in today's dollars?
2) Now let's consider a hypothetical situation where you are worth $1 million at the end of World War II. Using the same CPI tool, calculate how much you would need today to maintain the same purchasing power as in 1945.
3) Assume that the rate of inflation for the next 30 years is the same as the last 30 years. How much will you need to have the same purchasing power as you have today?