What is the value of ₹1 lakh in 2050?

Predicting the exact value of money in the future is difficult due to inflation and changing economic conditions. However, we can make an estimate based on average inflation rates.

Assuming an average annual inflation rate of 5%, ₹1 lakh today will be worth around ₹3.55 lakhs in 2050. This is calculated using the formula for future value (FV) in compound interest:

FV = PV x (1 + r)^n

Where:

• PV = Present Value = ₹1,00,000
• r = Annual inflation rate in decimal = 0.05
• n = Number of years = 2050 - 2024 = 26

Entering this into the formula:

FV = 1,00,000 x (1 + 0.05)^26 = ₹3,55,567

Of course, actual inflation varies each year, so this estimate assumes consistent 5% annual inflation. But it provides a reasonable benchmark for understanding the future value of money over an extended period based on average inflation trends.