Final answer:
The price of the candy bar in 2092 will be $10.09.
Step-by-step explanation:
To find the price of the candy bar in 2092, we can use the concept of inflation. Inflation refers to the general increase in prices over time. In this case, the question states that the federal reserve plans to increase the money supply by 2% per year. This means that the value of money decreases by 2% each year.
To calculate the price of the candy bar in 2092, we need to account for the cumulative effect of the 2% annual inflation over 92 years. We can use the formula:
Final Price = Initial Price * (1 + Inflation Rate) ^ Number of Years
Substituting the given values, the initial price of the candy bar is $1, the inflation rate is 2%, and the number of years is 92:
Final Price = $1 * (1 + 0.02) ^ 92
Calculating this equation gives us the final price of the candy bar in 2092, which is $10.09.