In inflation land, the rate of inflation r in a year is defined such that 1 dollar in the previous year is equal to r dollars in the current year. r starts at 1 but changes by 0.1 in either direction each year, and Bob buys a vacuum for 100 dollars from, We Suck Vacuums. The next year the company realized that Bob had gotten a broken vacuum and offered to pay 150 dollars for the vacuum so they could fix it. One year passes and nothing happens. Then Bob agrees and the next year the price for We Suck vacuums has increased to 200 dollars and Bob buys a vacuum. Another year passed and Bob realized that it was not fair that he paid 200 dollars and called the company for a 150 dollar one. The company bought back the vacuum for
200 dollars and Bob bought a We Suck vacuum for 150 dollars right after. Say m is the least amount of money Bob could have spent and n is the greatest amount of money he could have spent, make sure m and n are in terms of when inflation was 1. Find n – m. Remember you control inflation!
Thanks in advance!
