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Time Value of Money and Inflation

Time Value of Money and Inflation. By: me. Definitions.

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Time Value of Money and Inflation

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  1. Time Value of Money and Inflation By: me

  2. Definitions • The Time Value of Money is: the idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacityInflation is a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency

  3. The 1950s to TodayITEM: ring carot diamond • The item cost $399.00 in 1950. • The item costs $899.99 today • It has gone up $500.99 • That is a percent increase of .79% • So the inflation is .007%

  4. The 1950s to TodayITEM: ritz crax • The item cost 32ceng in 1950. • The item costs $18.99 today • It has gone up $18.67 • That is a percent increase of 8.34% • So the inflation is 58%

  5. The 1950s to TodayITEM: Square dance Cotton Check Dress • The item cost $3.29 in 1950. • The item costs $34.99 today • It has gone up $31.70 • That is a percent increase of 9.63% • So the inflation is 963.5%

  6. The 1990s to TodayITEM: Super Nintendo :DD • The item cost $159.00 in 1990. • The item costs $$89.99 today • It has gone up $-69 • That is a percent increase of -0.4% • So the inflation is -43.4%

  7. The 1990s to TodayITEM: Frozen Peas • The item cost 97 centz per lbs in 1990. • The item costs $45.35 today • It has gone up $44.38 • That is a percent increase of 1.03% • So the inflation is 0.01%

  8. The 1990s to TodayITEM: Snowboard • The item cost $199.00 in 1990. • The item costs $349.95 today • It has gone up $150.95 • That is a percent increase of .75% • So the inflation is 75.85%

  9. Questions: • Calculating inflation over the past 60 years helps us to show how much the economy changed throughout the years • Why is it important that people get raises? So they have enough to raise for themselves and/or family • If you get a 2% raise every year, will you be able to keep up with inflation? Why or why not? No because the salaries change and is the economy

  10. Conclusion: What I have learned(You must use the terms Time Value of Money and Inflation in your paragraph) • Over the past 60 years the prices have gone up significantly. the economy is all over the place. Prices are going up too high for the country to handle.

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