Inflation causes things to cost more, and for our money to buy less (hence your grandparents saying "In my day, you could buy a

Question

Inflation causes things to cost more, and for our money to buy less (hence your grandparents saying "In my day, you could buy a cup of coffee for a nickel"). Suppose inflation decreases the value of money by 5% each year. In other words, if you have $1 this year, next year it will only buy you $0.95 worth of stuff. How much will $100 buy you in 25 years?

Kunduz · Accepted Answer

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