Enter the total personal wealth, total real estate wealth, total business wealth, total investment wealth, and total retirement wealth into the calculator to determine the Global Wealth Index.
Global Wealth Index Formula
The following formula is used to calculate the Global Wealth Index.
GWI = (A + B + C + D + E) / 5
Variables:
- GWI is the Global Wealth Index
- A is the total personal wealth ($)
- B is the total real estate wealth ($)
- C is the total business wealth ($)
- D is the total investment wealth ($)
- E is the total retirement wealth ($)
To calculate the Global Wealth Index, add the total personal wealth, total real estate wealth, total business wealth, total investment wealth, and total retirement wealth. Then, divide the sum by 5. This will give you the average wealth, which is the Global Wealth Index.
What is a Global Wealth Index?
A Global Wealth Index is a measure used to compare the wealth of different individuals or households within a country or across different countries. It takes into account various factors such as income, assets, and debts to provide a comprehensive view of an individual’s or household’s financial situation. This index is often used by economists and researchers to study economic inequality, wealth distribution, and the overall economic health of a country or region.
How to Calculate Global Wealth Index?
The following steps outline how to calculate the Global Wealth Index (GWI).
- First, determine the total personal wealth ($).
- Next, determine the total real estate wealth ($).
- Next, determine the total business wealth ($).
- Next, determine the total investment wealth ($).
- Next, determine the total retirement wealth ($).
- Finally, use the formula GWI = (A + B + C + D + E) / 5 to calculate the Global Wealth Index.
- After inserting the values of A, B, C, D, and E into the formula, calculate the result.
- Check your answer with the calculator above.
Example Problem:
Use the following variables as an example problem to test your knowledge:
total personal wealth ($) = 500,000
total real estate wealth ($) = 1,000,000
total business wealth ($) = 750,000
total investment wealth ($) = 1,250,000
total retirement wealth ($) = 500,000
