How you can calculate the “real value” of future money:

I saw this formula in Shyam’s article “Beat inflation well ahead and copied the same for future reference. Thanks Shyam

Real value (in today’s money value) of Rs. X, which will be available Y years from now = X / (1+ annual inflation)ˆY. For example, the real value (in today’s money value) of Rs 1 crore, which will be available 20 years from now = 1 crore/ (1+6%)ˆ20 =31 lakhs= shrinkage of 3.2 times