> If you take $10,000 USD in cash and put it in the freezer, in a year it would be worth $9,700 of today’s value. > Yep you read that right. Holding USD means

> If you take $10,000 USD in cash and put it in the freezer, in a year it would be worth $9,700 of today’s value. > Yep you read that right. Holding USD means the cash will be “worth” less next year. This is because of a 3% inflation rate. This math is wrong. The value in today’s dollars will be 10,000 / (10,000 * 1.03) * 10,000 ~= 9,708.74