Question

Inflation causes things to cost more, and for cur money to bty less ohence your grandparents syying "In my day, you could buy a cup of coffee for a nickel"? Suppose inflation decreases the value of money by 2% each year, In other words, if you have st this year, nex year it will only bey you sogs. worth of stuif. How much will 5100 buy you in 15 years?

Answer 1

Inflation decreases the value of money over time. $5100 will be worth $3501.40 in 15 years, given an inflation rate of 2% per year.

Step-by-step explanation:

Inflation decreases the value of money over time. In this case, inflation decreases the value of money by 2% each year. To calculate how much $5100 will be worth in 15 years, we can use the formula for compound interest:

Future Value = Present Value * (1 + Inflation Rate)Number of Years

Substituting the given values into the formula, we get:
Future Value = $5100 * (1 - 0.02)15

Using a calculator, we can find that $5100 will be worth $3501.40 in 15 years.