Problem
Modules 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 Google Drive much will $\$ 100$ buy you in 10 years? Office 365
Solution
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.
