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Score- 67 Zu 2/) answered Question Inflation causes things to cost more; and for our money to buy less (hence your grandparents saying "In my day, you could buy cup of coffce for nickel") Suppose inflation decreases the value of money by 4% each year. In other words, if you have S1 this year_ next year it will only buy you S0.96 worth of stuff . How much will 510D buy you in 15 years? Question Help: Qvideo Submit Question
score- 67 Zu 2/) answered Question Inflation causes things to cost more; and for our money to buy less (hence your grandparents saying "In my day, you could buy cup of coffce for nickel") Suppose inflation decreases the value of money by 4% each year. In other words, if you have S1 this year_ next year it will only buy you S0.96 worth of stuff . How much will 510D buy you in 15 years? Question Help: Qvideo Submit Question
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Require the following discussion. Inflation is a term used to describe the erosion of the purchasing power of money. For example, if the annual inflation rate is $3 \%$, then $\$ 1000$ worth of purchasing power now will have only $\$ 970$ worth of inflation averages rper anmum over nyears, the amount A that SP will purchase after n years is $$A=P \cdot(1-r)^{n}$$ $$\text { where } r \text { is expressed as a decimal.}$$ If the inflation rate averages $3 \%,$ how much will $\$ 1000$ purchase in 2 years?
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