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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 you expect it to cost in two years time?

1 answer

A. C = 0.15 * 2000 = $300.

B. C = 0.15 * 2 * 2000 = $600.

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