and deeper

	A	B	C	D
1
2	Suppose I have a debt that is equal to half my annual income.
3	But then there is inflation, and my annual income increases 5% per year.
4	What does this do to my debt, relative to my income?
5
6	Year	Debt per Income	My Income	My debt
7	1	50.0%	100.00	50
8	2	47.6%	105.00	50
9	3	45.4%	110.25	50
10	4	43.2%	115.76	50
11	5	41.1%	121.55	50
12	6	39.2%	127.63	50
13	7	37.3%	134.01	50
14	8	35.5%	140.71	50
15	9	33.8%	147.75	50
16	10	32.2%	155.13	50
17	11	30.7%	162.89	50
18	12	29.2%	171.03	50
19	13	27.8%	179.59	50
20	14	26.5%	188.56	50
21	15	25.3%	197.99	50
22	16	24.1%	207.89	50
23
24
25
26
27
28
29
30	Suppose I borrow an amount equal to 3% of my income each year,
31	and allow this to accumulate as debt.
32	What does this look like?
33
34	Year	Debt per Income	My Income	My debt
35	1	0.03	100	3
36	2	0.06	100	6
37	3	0.09	100	9
38	4	0.12	100	12
39	5	0.15	100	15
40	6	0.18	100	18
41	7	0.21	100	21
42	8	0.24	100	24
43	9	0.27	100	27
44	10	0.3	100	30
45	11	0.33	100	33
46	12	0.36	100	36
47	13	0.39	100	39
48	14	0.42	100	42
49	15	0.45	100	45
50	16	0.48	100	48
51
52
53
54
55
56
57
58	Suppose I start with debt equal to 50% of my income,
59	And suppose I borrow an amount equal to 3% of my income each year,
60	allowing this debt to accumulate.
61	But beginning in year 5 and lasting to year 10, there is inflation
62	and my income increases at 5% per year.
63	Note that my new borrowing increases with my income,
64	but my existing accumulation of debt is reduced by inflation.
65
66	Year	Debt per Income	My Income	My debt
67	1	0.50	100.00	50.00
68	2	0.53	100.00	53.00
69	3	0.56	100.00	56.00
70	4	0.59	100.00	59.00
71	5	0.59	105.00	62.15
72	6	0.59	110.25	65.46
73	7	0.60	115.76	68.93
74	8	0.60	121.55	72.58
75	9	0.60	127.63	76.41
76	10	0.60	134.01	80.43
77	11	0.63	134.01	84.45
78	12	0.66	134.01	88.47
79	13	0.69	134.01	92.49
80	14	0.72	134.01	96.51
81	15	0.75	134.01	100.53
82	16	0.78	134.01	104.55
83
84
85
86
87
88
89
90