Final answer:
To calculate the adjusted value considering a 9% inflation rate for the past 9 years, use the compound interest formula. The adjusted value in 2006 would be $192.54. Inflation has reduced the purchasing power by $92.54.
Step-by-step explanation:
To calculate the adjusted value considering a 9% inflation rate for the past 9 years, we can use the compound interest formula. Let's assume the initial value is $100. To find the adjusted value in 2006, we can use the formula:
A = P(1 + r)^n
where A is the adjusted value, P is the initial value, r is the inflation rate, and n is the number of years.
Plugging in the values, we get A = 100(1 + 0.09)^9 = 100(1.09)^9 = 192.54.
Therefore, the adjusted value in 2006 considering a 9% inflation rate for 9 years would be $192.54.
The impact on purchasing power can be calculated by comparing the adjusted value to the initial value. In this case, the impact would be the difference between the adjusted value and the initial value, which is $192.54 - $100 = $92.54.
Inflation over the specified period has reduced the purchasing power by $92.54. This means that compared to the initial value, the student would have to spend $92.54 more to purchase the same goods in 2006 due to inflation.
Other considerations related to the scenario could include the effects of inflation on savings, loans, investments, and overall economic stability.