The time value of money
Tk 100 today and Tk 100 ten years from now are not the same thing. Here are five ways to see why.
What could Tk 100 buy then, what does it buy now, and what will it buy later?
Today's prices, Dhaka retail markets: coarse rice Tk 50–55/kg, eggs Tk 155–160/dozen (The Business Standard, 9 October 2026); potatoes Tk 25–30/kg, loose soybean oil Tk 185–190/litre (The Business Standard, 21 August 2026). Prices for other years are estimates based on the inflation rate; the actual price of any single item may differ.
Interest flows in, inflation leaks out
The interest rate is only an example; try changing it. Tax: 10% of the interest is deducted at source if you have a PSR (proof of submission of an income tax return), otherwise 15%. Inflation starts at the latest annual rate (8.34%, BBS (Bangladesh Bureau of Statistics), September 2026).
What is future money worth today?
The higher the rate and the longer the wait, the steeper the bridge, and the smaller future money looks in today's terms.