61,67 please th of purchasing power now will have only $970 worth of purchdsin= 30) has been eroded due to inflation. In general, if the rate of inflationurchase after n years is9.(1-r)"60. Inflation If the purchasing power of $1000 is only $930after 2 years, what was the average inflation rate?61. Inflation If the average inflation rate is 2%, how long is ituntil purchasing power is cut in half?62. Inflation If the average inflation rate is 4%, how long is ituntil purchasing power is cut in half?Iis a bond that is sold now at a discount and will pay its face value at the67. Time to Double or Triple an Investment The formulaIn mit =n In 1 +-ncan be used to find the number of years t required to multiplyan investment m times when r is the per annum interest ratecompounded n times a year.(a) How many years will it take to double the value of anIRA that compounds annually at the rate of 6%?(b) How many years will it take to triple the value of asavings account that compounds quarterly at an annualrate of 5%?(c) Give a derivation of this formula.

Since you have asked multiple question, we will solve the first question for you. If youwant any…

Answered: Inflation If the average inflation rate…

Math

Calculus

Inflation If the average inflation rate is 2%, how long is It until purchasing power is cut in half?

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter6: Exponential And Logarithmic Functions

Section6.1: Exponential Functions

Problem 63SE: In the year 1985, a house was valued at 110,000. Bythe year 2005, the value hadappreciated to...

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Estimation

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Question

61,67 please

th of purchasing power now will have only $970 worth of purchdsin
= 30) has been eroded due to inflation. In general, if the rate of inflation
urchase after n years is
9.(1-r)"
60. Inflation If the purchasing power of $1000 is only $930
after 2 years, what was the average inflation rate?
61. Inflation If the average inflation rate is 2%, how long is it
until purchasing power is cut in half?
62. Inflation If the average inflation rate is 4%, how long is it
until purchasing power is cut in half?
Iis a bond that is sold now at a discount and will pay its face value at the
67. Time to Double or Triple an Investment The formula
In mi
t =
n In 1 +-
n
can be used to find the number of years t required to multiply
an investment m times when r is the per annum interest rate
compounded n times a year.
(a) How many years will it take to double the value of an
IRA that compounds annually at the rate of 6%?
(b) How many years will it take to triple the value of a
savings account that compounds quarterly at an annual
rate of 5%?
(c) Give a derivation of this formula.

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