I'm an engineer, not an accountant so I have no idea what formulas to use (or even the proper terms to google for). I've looked around on a couple of google results, but most of the explanations just fly over my head, so I'd really appreciate if you can help me calculate these 3 inflation related things. I'm interested on the formulas themselves because I don't live in the US so most online inflation calculators don't really apply to my situation.
1) If I had a salary of $1000 five years ago AND on average the inflation was 10%, what's it's equivalent today?
2) If my salary is $1000 today, what would it's equivalent estimated value be in 5 years, if I expect inflation to be on average 12% yearly?
3) How do you adjust the price or value of an item to compensate inflation; eg: Say I have a house I paid 1 million dollars 3 years ago (ignore depreciation and other factors that can affect the asset's value), if inflation was: Y1 = 10%, Y2 = 11% and Y3 = 12%, what would the value of the house be?
When I searched around on google I came across this post, according to its premise, I should be able to calculate 1 and 2 with a the following formula
Present amount * (1+inflation%)^number of years
Am I on the right track or are there other factors I'm missing to solve my problem?