inflation 120 dollars now buys me 100 dollars worth of goods
What is your question?
inflation 120 dollars now buys 100 dollars worth of goods what is inflation rate
To calculate the inflation rate, you need to compare the purchasing power of a certain amount of money over time. In this case, you want to determine the inflation rate based on the fact that $120 now buys you $100 worth of goods.
First, calculate the inflation rate using the following formula:
Inflation Rate = ((Current Price - Previous Price) / Previous Price) * 100
In this case, the "Current Price" is $100 (the amount it now buys you) and the "Previous Price" is $120.
Let's plug these values into the formula:
Inflation Rate = (($100 - $120) / $120) * 100
Simplifying further:
Inflation Rate = (-$20 / $120) * 100
Inflation Rate ≈ -16.67%
Therefore, according to the given information, the inflation rate is approximately -16.67%. This negative sign indicates a decrease in purchasing power, which means prices have risen by 16.67%.