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FV = PV * (1 R)^n Adjusting for inflation means measuring the value of money in constant price or change in purchasing power of money overtime. Adjusting for inflation compares the real value of money across different time period. The video captures two scenario based on assumption I. Purchase and Sales of Land (Scenario 1) II. Bank Deposit (Scenario 2) ✓ Scenario 1 Initial purchase = $100,000 Selling price after 3 years = $170,000 ✓ Scenario 2 Initial deposit= $100,000 Amount after 3 years = $1
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