document.write( "Question 1109427: 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 20 years? \n" ); document.write( "
Algebra.Com's Answer #724444 by josmiceli(19441)\"\" \"About 
You can put this solution on YOUR website!
Let \"+V+\" = value of the money
\n" ); document.write( "after 20 yrs
\n" ); document.write( "\"+V+=+100%2A%28+1+-+.05+%29%5E20+\"
\n" ); document.write( "\"+V+=+100%2A.95%5E20+\"
\n" ); document.write( "\"+V+=+100%2A.3585+\"
\n" ); document.write( "\"+V+=+35.85+\"
\n" ); document.write( "In 20 yrs $100 is worth $35.85
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