document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1168375>Question 1168375</A>: <I><SPAN STYLE=\"word-break: break-all;\"> From 1929 through the early 1930s, the prices of consumer goods actually decreased. Economists call this phenomenon deflation. The rate of deflation during this period was about 7% per year, meaning that prices decreased by 7% per year. To get a sense of what this rate would mean in the long run, let's suppose that this rate of deflation persisted over a period of 20 years.\r<BR>\n" );
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document.write( "What would be the cost after 20 years of an item that costs $400 initially? (Round your answer to the nearest cent.) </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #792955 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><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=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=792955\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> This is 400(1-0.07)^20<BR>\n" );
document.write( "400*0.93^20=$93.70 </SPAN>\n" );
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