How do we include inflation in our compound interest calculations?
E.g. if we have current principal of 1000$
and the interest rate is 3% after 10 years we have 1344$
(used this calculator)
But if for this exercise we wanted to take inflation into account let's say 2% how would that be part of our formula?
Update:
I know that the number including the inflation is 1102$
.
I don't know exactly how to do the calculations to get the 1102$
. Getting the 1334$
is straightforward but I am confused on how to include inflation to get the 1102$