Question

A basket of May flowers at Betty's Blooms cost $35 today. Assuming that inflation has been running at 5.1% per year for the past several years, how much did a comparable basket of flowers cost 7 years ago?

When dealing with a value of the past (7 years ago) does this value become negative?

Answer 1

What I know:
P=35,R=5.1%,T=7 (but 7 years ago) m I assume is 1

A= 35(1+0.051/1) ^1*-7

Answer 2

Let the cost 7 years ago be x , then

x(1.051)^7 = 35
x = 35/(1.051)^7 =

or
amount 7 years ago = 35(1.051)^-7
you MUST get the same answer.