b. If you bought a Picasso painting at last week 's auction for $200,000 and the annual inflation rate is 10 percent, how long would it take to double your money? If you bought a painting by Picasso for $200,000 with an annual inflation rate of 10 percent, it would take around 7 years for the painting’s worth to double.

c. If you went to the car show and bought a 1965 Mustang in mint condition for $25,000 and the annual inflation rate was 8 percent, when would your investment double? If you bought a 1965 Mustang for $25,000 with an annual inflation rate of 8 percent, it would take around 9 years for the car’s worth to double based on the Rule of 72.

d. If your grandmother gave you her wedding ring, it was appraised at $1,200, and the annual inflation rate was 6 percent, how many years would it be before it was worth $2,400? If your grandmother gave you her wedding ring, which was appraised at $1,200 and it had an annual inflation rate of 6 percent; it would take about 12 years for the ring’s worth to become $2,400.

e. If you bought an antique lamp for $3,000 and the inflation rate was 3 percent, how many years would it be before your

*…show more content…*

While people who are in debt come out ahead during times of inflation, banks and individuals living on a fixed income lose greatly. As the value of money decreases, banks that are collecting debt come out on the losing side since their money has lost nearly half its original value. Individuals living on a fixed income (such as retirement) also face similar issues as their once sustainable income has now lost its value. This resulted in people being forced to move, having to make cutbacks, and sometimes becoming