SOLUTION: Can someone explain me how to calculate this. Thank you If money loses​ value, then as time​ passes, it takes more dollars to buy the same item. Use the table to ans

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Question 1099258: Can someone explain me how to calculate this. Thank you
If money loses​ value, then as time​ passes, it takes more dollars to buy the same item. Use the table to answer the questions. Let t be years and y be the value of​ $ in t years..
t: 1, 2, 3, 4, 5, 6,
y: 0.98, 0.96, 0.94, 0.92, 0.90, 0.89
a) Suppose a house cost $103.000 today. Estimate the cost of the same house in 6 years?
b) Estimate a cost of $40 textbook in 2 years?

Answer by addingup(3677)   (Show Source): You can put this solution on YOUR website!
In 6 years, every dollar will be worth 0.89 cents.
Today: 103000/1 = 103000
but...
in 6 years: 103000/0.89 = 115730.34

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