Suppose the annual inflation rate was 3.3 for each year, 10 straight years. What was the inflation rate for the decade?

To calculate the cumulative inflation rate over a decade (10 years) with an annual inflation rate of 3.3%, you need to account for compounding. The formula for cumulative inflation over multiple years is:

\[
\text{Cumulative inflation rate} = \left(1 + \frac{r}{100}\right)^n - 1
\]

Where:
- \( r \) is the annual inflation rate (3.3%),
- \( n \) is the number of years (10).

Substituting the values:

\[
\text{Cumulative inflation rate} = \left(1 + \frac{3.3}{100}\right)^{10} - 1 = (1.033)^{10} - 1
\]

Let me calculate this for you.

The cumulative inflation rate over the 10-year period with a constant annual inflation rate of 3.3% is approximately **38.36%**.

Would you like more details or have any questions?

Here are five related questions:
1. What happens if the annual inflation rate changes each year?
2. How does inflation affect the purchasing power of money over time?
3. What is the difference between nominal and real interest rates considering inflation?
4. How would you calculate the inflation-adjusted value of an asset after 10 years?
5. How can inflation impact long-term investments?

**Tip:** When dealing with inflation over multiple years, always account for compounding rather than just adding annual rates.

Learn how to calculate the cumulative inflation rate over a 10-year period with a constant annual inflation rate of 3.3%. This guide explains the use of the compound interest formula to find the overall inflation rate after 10 years, resulting in approximately 38.36%. Suitable for students in Grades 9-12.

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