first year adjustment for inflation


W

wingor

When calculating an inflation adjusted return over a ten year period
where the rate of inflation is 4%and the after-tax return is 8%, the
formula (1.08/1.04) -1 x 100 may be used to calculate the
inflation-adjusted return. What, if any, adjustments should be made
for the FIRST year of inflation.

Thanks in advance.
 
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