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Engineering Economics2D

Inflation and Purchasing Power - Theory & Concepts

Understanding the effects of inflation, real vs actual dollars, and the Fisher Equation in engineering economic analysis.

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Purchasing Power Erosion Simulator

Initial Amount ($)

Inflation Rate (%)3%

Time Horizon (Years)20 yrs

Results

Initial Value:

$1,000

Final Power:

$553.68

Value Lost:

-$446

Erosion Formula:

Power_n = \frac{P}{(1 + f)^n}

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