Problem
1. Jeff just received a refund of $2,178 from his family physician. This was an overpayment on his account, and it has been 3 years since the overpayment was due. Jeff is really frosted by this delay! What is the purchasing power now (year 0) of the overpayment if inflation has been 4%, 3%, and 2%, respectively, in years -3 (three years ago), -2 (two years ago), and -1 (last year)?
2. Develop a spreadsheet to verify that the following table entries are correct (to the nearest whole percent).
Erosion of Money's
Purchasing Power
Inflation Rate 10 years 25 years
2% -18% -39%
4% -32% -62%
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.