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What will be the purchasing power of the tax credit

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Simon is given a $1000 tax credit in 2014, 2015, and 2016 and that tax credit is not indexed to inflation. If inflation will be 3% between 2014 and 2015 and 5% between 2015 and 2016, what will be the purchasing power of the tax credit in 2016? A. $922 B. $925 C. $1008 D. $1082

Reference no: EM131943496

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