# You made $3000 on a part-time job last year. If you expect to make the same amount this year, and the inflation rate is three percent, what is your purchasing power?

##### 1 Answer

Aug 12, 2018

#### Answer:

New spending power is 97.087% of this year

(to 3 decimal places)

#### Explanation:

Assumption: The inflation rate of 3% is applied to the cost of everything (not so in real life).

So the change is:

This years cost:

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Thus the new

Expressing this as a percentage of last years 'spending power' we have:

New spending power is: 97.087% to 3 decimal places