Question: 1. Jeff just received a refund of $2,178 from his family physician. This was an overpayment on his account, and it has been 3 years since the overpayment was due. Jeff is really frosted by this delay! What is the purchasing power now (year 0) of the overpayment if inflation has been 4%, 3%, and 2%, respectively, in years -3 (three years ago), -2 (two years ago), and -1 (last year)?

2. Develop a spreadsheet to verify that the following table entries are correct (to the nearest whole percent).

- Erosion of Money's

- Purchasing Power

Inflation Rate                 10 years                25 years
2%                                  -18%                   -39%
4%                                  -32%                   -62%