# Chapter 6 - Section 6.7 - Financial Models - 6.7 Assess Your Understanding - Page 476: 58

${{\$}} 941.19$#### Work Step by Step Inflation: The amount A that${{\$}} P$ can purchase after n years, with annual inflation rate r (decimal) is $A=P\cdot(1-r)^{n}$ --- $P=1000,r=0.02,n=3$ $A=1000(1-0.02)^{3}\approx {{\$}} 941.19\$

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