An Economist Predicts That the Buying Power B(x) of a Dollar

question 120

Multiple Choice

An economist predicts that the buying power B(x) of a dollar x years from now will decrease according to the form $B ( x ) = 0.51 ^ { x }$ . How much will today's dollar be worth in 7 years? Round the answer to the nearest cent.

• A) $3.57
• B) $2.70
• C) $0.62
• D) $0.01

---

Definitions:

Accounts Payable

Liabilities representing the amount a company owes to creditors for purchases made on credit.

Cash Inflow

Money entering a business, typically from operations, investments, or financing activities.

Cash Outflow

Refers to the payment of money in the form of cash or cash equivalents by a business for various purposes, including operating expenses, investment activities, and financing activities.

Direct Method

A way of presenting a cash flow statement where major classes of gross cash receipts and payments are disclosed, providing insight into the sources and uses of cash.