Assume you mistakenly buried a $100 bill in a time capsule in 1970 and dug it up again in 2012.What would be its real purchasing power ?
A)$122
B)$100
C)$88
D)$42
E)$17

Question

Quizplus · Accepted Answer

The purchasing power of money decreases over time due to inflation. From 1970 to 2012, inflation significantly reduced the value of money, making the $100 bill worth only about $17 in 2012 dollars.

Assume You Mistakenly Buried a $100 Bill in a Time