document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1139393>Question 1139393</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Does anyone know how to answer this question? I do not understand it. Thank you.\r<BR>\n" );
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document.write( "If prices increase 2% each year for 10 years, then a jacket that costs $90 today will cost $109.71 in 10 years. What is the percentage decrease in the buying power of currency over the 10-year period?  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #759857 by </B><A HREF=/tutors/aboutme.mpl?userid=MathLover1><B>MathLover1(20849)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=MathLover1><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=MathLover1><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=759857\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\">  If prices increase <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=2 ALIGN=MIDDLE  ALT=\"2\"   DISABLED_style= \"max-width:90%; height:auto;\" >% each year for <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=10 ALIGN=MIDDLE  ALT=\"10\"   DISABLED_style= \"max-width:90%; height:auto;\" > years, then a jacket that costs $<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=90 ALIGN=MIDDLE  ALT=\"90\"   DISABLED_style= \"max-width:90%; height:auto;\" > today will cost $<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=109.71 ALIGN=MIDDLE  ALT=\"109.71\"   DISABLED_style= \"max-width:90%; height:auto;\" > in <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=10+ ALIGN=MIDDLE  ALT=\"10+\"   DISABLED_style= \"max-width:90%; height:auto;\" >years. \r<BR>\n" );
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document.write( "here is how:\r<BR>\n" );
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document.write( "Start amount:  $<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=90 ALIGN=MIDDLE  ALT=\"90\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "After <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1 ALIGN=MIDDLE  ALT=\"1\"   DISABLED_style= \"max-width:90%; height:auto;\" > year: <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1.02%2890%29 ALIGN=MIDDLE  ALT=\"1.02%2890%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "After <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=2+ ALIGN=MIDDLE  ALT=\"2+\"   DISABLED_style= \"max-width:90%; height:auto;\" >years:<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+1.02%281.02%2890%29%29 ALIGN=MIDDLE  ALT=\"+1.02%281.02%2890%29%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "After <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=3 ALIGN=MIDDLE  ALT=\"3\"   DISABLED_style= \"max-width:90%; height:auto;\" > years: <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1.02%281.02%281.02%2890%29%29%29 ALIGN=MIDDLE  ALT=\"1.02%281.02%281.02%2890%29%29%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > \r<BR>\n" );
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document.write( "etc<BR>\n" );
document.write( "so after 10 years: <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1.02%5E10+%2A+90+=+109.7094977=109.71 ALIGN=MIDDLE  ALT=\"1.02%5E10+%2A+90+=+109.7094977=109.71\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "the difference in prices or price increase was:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=109.71-90=19.71 ALIGN=MIDDLE  ALT=\"109.71-90=19.71\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "and find what <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=percentage ALIGN=MIDDLE  ALT=\"percentage\"   DISABLED_style= \"max-width:90%; height:auto;\" > is it of the <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=original ALIGN=MIDDLE  ALT=\"original\"   DISABLED_style= \"max-width:90%; height:auto;\" > price\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%28x%2F100%2990=19.71 ALIGN=MIDDLE  ALT=\"%28x%2F100%2990=19.71\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=9x%2F10=19.71 ALIGN=MIDDLE  ALT=\"9x%2F10=19.71\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=9x=19.71%2A10 ALIGN=MIDDLE  ALT=\"9x=19.71%2A10\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=x=197.1%2F9 ALIGN=MIDDLE  ALT=\"x=197.1%2F9\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=x=21.9 ALIGN=MIDDLE  ALT=\"x=21.9\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "so its percent increase is <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=21.9 ALIGN=MIDDLE  ALT=\"21.9\"   DISABLED_style= \"max-width:90%; height:auto;\" >%\r<BR>\n" );
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document.write( "=> percent increase in price= percent decrease in the buying power of currency<BR>\n" );
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document.write( "in your case, decrease in the buying power of currency over the 10-year period will be: <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=21.9 ALIGN=MIDDLE  ALT=\"21.9\"   DISABLED_style= \"max-width:90%; height:auto;\" >%\r<BR>\n" );
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document.write( "remember:\r<BR>\n" );
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document.write( "decrease in the buying power of currency- simply, inflation<BR>\n" );
document.write( "the impact that inflation has on the time value of money is it decreases the value of a dollar over time<BR>\n" );
document.write( "inflation increases the prices of goods and services over time, effectively decreasing the amount of goods and services you can buy with a dollar in the future as opposed to a dollar today \r<BR>\n" );
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document.write( " </SPAN>\n" );
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