$41,721 in 1986 is worth$68,481.82 in 2002

$41,721 in 1986 has the same purchasing power as$68,481.82 in 2002. Over the 16 years this is a change of $26,760.82. The average inflation rate of the dollar between 1986 and 2002 was 3.08% per year. The cumulative price increase of the dollar over this time was 64.14%. The value of$41,721 from 1986 to 2002

So what does this data mean? It means that the prices in 2002 are 684.82 higher than the average prices since 1986. A dollar in 2002 can buy 60.92% of what it could buy in 1986.

We can look at the buying power equivalent for $41,721 in 1986 to see how much you would need to adjust for in order to beat inflation. For 1986 to 2002, if you started with$41,721 in 1986, you would need to have $68,481.82 in 1986 to keep up with inflation rates. So if we are saying that$41,721 is equivalent to $68,481.82 over time, you can see the core concept of inflation in action. The "real value" of a single dollar decreases over time. It will pay for fewer items at the store than it did previously. In the chart below you can see how the value of the dollar is worth less over 16 years. Value of$41,721 Over Time

In the table below we can see the value of the US Dollar over time. According to the BLS, each of these amounts are equivalent in terms of what that amount could purchase at the time.

Year Dollar Value Inflation Rate
1986 $41,721.00 1.86% 1987$43,243.66 3.65%
1988 $45,032.79 4.14% 1989$47,202.59 4.82%
1990 $49,753.05 5.40% 1991$51,846.72 4.21%
1992 $53,407.45 3.01% 1993$55,006.25 2.99%
1994 $56,414.71 2.56% 1995$58,013.51 2.83%
1996 $59,726.50 2.95% 1997$61,096.90 2.29%
1998 $62,048.57 1.56% 1999$63,418.97 2.21%
2000 $65,550.70 3.36% 2001$67,415.96 2.85%