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Calculate inflation

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  • QrizB
    QrizB Posts: 18,281 Forumite
    10,000 Posts Fourth Anniversary Photogenic Name Dropper
    20122013 said:
      QrizB 
    A sceanrio:
    If I want to draw 2% from the £100K  pot.
    2% of £100K = £2000  per year
    3% is (almost) 1/33rd, which is where the 33 comes from.
    2% is 1/50th, so you'd multiply by 50.
    £2k x 50 = £100k.
    4% is 1/25th, multiply by 25.
    5% is 1/20th, multiply by 20.
    And so on.

    N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 34 MWh generated, long-term average 2.6 Os.
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  • 20122013
    20122013 Posts: 477 Forumite
    100 Posts First Anniversary Name Dropper
    westv said:
    I thought my calc was the simplest (or the one using 0.03 if you calculator doesn't have a % button or you don't know how to use MS Excel).
    Your is the simpliest =)  and  have a better understanding .


  • FIREDreamer
    FIREDreamer Posts: 1,008 Forumite
    500 Posts Second Anniversary Name Dropper Photogenic
    20122013 said:
    @ QrizB 
    A sceanrio:
    If I want to draw 2% from the £100K  pot.
    2% of £100K = £2000  per year
    £2000 x 22 (??) = 44000?


    I am still not sure where the '33' come from ? as it is just repat the digit? ie:
    2% will turn to 22?
    4% to 44?



    Try multiplying by 50...i.e. 2% is a 50th of 100%.

    Where is Carol Vorderman when you need her?!

    TBF the 'x 33.3333' probably didn't help to explain it to you.
    The easiest way is to work out your return from a lump sum and then that is what you can roughly take to stay on an even keel.

    £100k x 1% = £1,000
    £100k x 2% = £2,000
    £100k x 3% = £3,000 etc

    I'm sure someone will be along in a moment to complicate it further.  :D
    Ugh, give me Rachel Riley any day. 
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