You can
put this solution on YOUR website!250 a month 32 years ago.
Rent goes up 4% each year.
250 * (1.04)^32 = 877.0146867 today.
Inflation is the increase in price per year.
At 4% per year, the rent is multiplied by 1.04 each year.
first year the rent is $250
Second year the rent is $250 * 1.04 = $260.00
Third year the rent is $260.00 * 1.04 = $270.4
You went up two years.
The formula is $250 * (1.04)^n where n is the number of years.
n = 2
250 * (1.04)^2 = $270.4
When n = 32, the formula becomes:
250 * (1.04)^32 = $877.0146867
