0/6 Points] DETAILS MY NOTES. WANEFMAC8 3.2.045. PREVIOUS ANSWERS ASK YOUR TEACHER PRACTICE ANOT Inflation has been running \( 4 \% \) per year. A car now costs \( \$ 30,000 \). How much (in dollars) would it have cost 2 years ago? (Round your answer to the nearest cent.) \( \$ 27,732.00 \mathrm{x} \) Need Help? Readil Whtch

To find out how much the car cost two years ago, you can use the formula for adjusting for inflation: \( \text{Cost}_{\text{past}} = \frac{\text{Cost}_{\text{present}}}{(1 + \text{inflation rate})^{n}} \). Plugging in the values, we get \( \text{Cost}_{\text{past}} = \frac{30000}{(1 + 0.04)^{2}} \), which results in an approximate cost of \( \$27,732.00 \). Inflation impacts various aspects of our everyday lives, including purchasing power and savings. With a 4% inflation rate, a dollar will buy you less in the future. Keeping an eye on historical inflation rates can be crucial for making informed financial decisions, whether you're saving for retirement, planning a big purchase, or just trying to budget effectively!