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Inflation causes things to cost more, and for our money to buy less. 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 10 years?

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Answer: 99.95


Step-by-step explanation: If you substract 100-5% you get 99.95


User Grant Foster
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