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natima [27]
3 years ago
15

From 1929 through the early 1930s, the prices of consumer goods actually decreased. Economists call this phenomenon deflation. T

he rate of deflation during this period was about 7% per year, meaning that prices decreased by 7% per year. To get a sense of what this rate would mean in the long run, let's suppose that this rate of deflation persisted over a period of 20 years.
What would be the cost after 20 years of an item that costs $100 initially? (Round your answer to the nearest cent.)
$
Mathematics
2 answers:
Tresset [83]3 years ago
7 0

Answer:

23.42

Step-by-step explanation:

is your answer helps you

ludmilkaskok [199]3 years ago
4 0

Answer:

23.42

Step-by-step explanation:

If something is decreasing by 7% we can mulitply it by (1-.07) or .93

so our formula is

100(.93)²⁰= 23.42388737

which rounds to 23.42

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