00:01
Let me just write the formula for this one.
00:03
This is about the purchasing power of a dollar.
00:06
So the purchasing power of a dollar, which is ppd, that is equal to 1 over 1 plus i.
00:12
This is the formula.
00:14
And the purchasing power of dollar was decreased almost 4%.
00:19
So if it is decreased 4%, so this is 1 minus 0 .04, which is equal to 0 .96.
00:26
So the purchasing power of dollar, which is equal to 0 .96, and we're going to get the inflation right here.
00:33
So i'm going to plug in all the values here.
00:35
This is 0 .96, which is equal to 1 minus 1 over 1 plus i.
00:40
If i do the cross multiplication here, 1 plus i, which is equal to 1 over 0 .96.
00:46
So the i is equal to 1 over 96 minus 1, which is equal to...