Wow that inflation rate is really big!
Consider this. Inflataion is usually an annual unit so therefore
After 1 year:
After 2 years:
Do you follow?
In Newtopia, inflation runs at 15%. A home entertainment unit currently sells for $2000.
a) How much would you expect it to cost in a year’s time?
b) How much would expect it to cost in two year’s time?
i got
a) 15/ 100 x 2000 = 300 2000= 300 = $2300
b) 2300 x 2 yrs = $4600