Alan’s dad might not have given him any money, but Alan received a $100,000 inheritance from a long lost relative. He wants to save the money for the future, but he doesn’t trust banks, or investments, so he stashes his money in a trunk. Over the next 35 years, the inflation averages 3.25%. A) What is the purchasing power of the $100,000 after 35 years? B) How much would Alan have to have inherited to be able to afford a $100,000 car in 35 years using this savings method?

Answer rating: 100% (QA)

A Amount inherited 100000 Inflation rate r 325 or 00325 ... View the full answer