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Sorry to rain on your parade, but you are mistaken.<br> <br> 100% inflation means a 100% erosion in purchasing power. Therefore, twice as many dollars will be required to buy the same loaf of bread.<br> <br> The PV calculation (which I assume you were referring to) is: amount/(1 + inflation rate)^number years. This is the calculation for arriving at the "discounted" value of a currency, after inflation.<br> <br> However, when calculating inflation and its impact on purchasing power, you must use the FV calculation, which is as follows: amount * (1 + inflation Rate)^number years<br> <br> I hope this clears things up for you "government-educated" people out there.
By $mooth Operator

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