SOLUTION: if the rate of inflation averages r per annum over n years, the amount. A that $P will purchase after n years is A=P(1-r)^n, where r is expressed as a decimal. if the inflation rat

Question 1162505: if the rate of inflation averages r per annum over n years, the amount. A that $P will purchase after n years is A=P(1-r)^n, where r is expressed as a decimal. if the inflation rate averages 2.1%, how much will $2,000 purchase in 4 years?
Answer by ikleyn(52855) (Show Source): You can put this solution on YOUR website!
.


Substitute  r = 2.1% = 0.021,  P = 2000  and  n = 4  into the formula and calculate


    A =  =  = 1837.97  today's dollars.    ANSWER

Solved, answered, explained and completed.

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