Image by Augustus Binu
THE SCENARIO
I moved to California in August of 1993. When I arrived, I needed to eat, so I went grocery shopping. I always liked eating fresh fruit, and the local market had bananas for 25 cents per pound.
Flash forward to today (March of 2018), and I still enjoy eating fresh fruit. However, my local store sells them for 67 cents per pound today.
The question: What has the average annual inflation rate* been on the bananas I've bought? Assume monthly compounding.
* Discussions of inflation tend to be contentious, and there are different ways to calculate aggregate inflation figures. Governments calculate and publish figures that span their entire economy or certain sectors, and those determinations ofte...
Read more...
