Inflation causes things to cost more, and for our money to buy less (hence your grandparents saying "In my day, you could buy a cup of coffee for a nickel"). Suppose inflation decreases the value of money by 4% each year. In other words, if you have $1 this year, next year it will only buy you $0.96 worth of stuff. How much will $100 buy you in 20 years?

The amount that $100 will be able to buy in 20 years, given an inflation rate of 4% is $44.20How to find the value of money?When given the inflation rate, know that this rate is the rate at which the value of money decreases per year. If given a rate of 4% as inflation, then the value of a dollar would decrease by 4% a year. In 20 years therefore, the value of $100 would be:Value in 20 years = Value today x (1 - inflation rate) ^ number of years = 100 x (1 - 4%) ²⁰= $44.20Find out more on inflation at https://brainly.com/question/8149429#SPJ1