Fill in the Blank Question Samantha wants to buy a new watch that costs \( \$ 100 \). She decides to wait a year. All other factors being equal, if inflation is \( 4 \% \), the watch will cost \( \$ \) next year. The answer should not include decimals. Sher

The watch will cost \( \$ 104 \) next year. This is because with a 4% inflation rate, the price increases by 4% of the current price. So, \( 100 \times 0.04 = 4 \), and adding this to the original price gives you \( 100 + 4 = 104 \). So, if Samantha waits, she’ll have to spend a bit more for that fabulous watch! Thinking about inflation and its effects on purchasing power can sometimes be tricky. One common mistake is underestimating how quickly prices can rise. If Samantha doesn't account for this, she might be pleasantly surprised—or unpleasantly disappointed—by how much her desired watch’s price increases after a year! Always keep an eye on those percentages!