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Inflation causes things to cost more, and for our money to buy less (hence your grandparents saying "In my day, you could buy a cup of coffee for a nickel"). Suppose inflation decreases the value of money by $3 \%$ each year. In other words, if you have $\$ 1$ this year, next year it will only buy you $\$ 0.97$ worth of stuff. How
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Therefore, $x$ is \[\frac{100}{0.97^{10}} = \boxed{74.41},\]to the nearest cent.

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Step 1 ：Let $x$ be the value of $100 in 10 years, in dollars. Then in ten years, with a three percent annual inflation rate, $x$ will be $100 \cdot 0.97^{10}$ dollars.

Step 2 ：Therefore, $x$ is \[\frac{100}{0.97^{10}} = \boxed{74.41},\]to the nearest cent.

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