asked 208k views
3 votes
If kendra hadn't found the money for another 10 years, and the average inflation rate continued, what would be the purchasing power of the $50

asked
User Triggs
by
7.8k points

1 Answer

1 vote

Answer:

Explanation:

To calculate the future purchasing power of $50 over a period of 10 years with the consideration of average inflation, we need to know the average inflation rate. Since you haven't provided the specific inflation rate, let's assume an average inflation rate of 2% per year.

To calculate the future value of $50, we can use the formula for compound interest:

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

Using this formula, we can calculate the future value of $50 after 10 years:

Future Value = $50 * (1 + 0.02)^10

Future Value = $50 * (1.02)^10

Future Value ≈ $50 * 1.2184

Future Value ≈ $60.92

Therefore, if Kendra hadn't found the money for another 10 years, with an average inflation rate of 2% per year, the purchasing power of $50 would be approximately $60.92.

answered
User Yokota
by
8.4k points
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