Q3.The amount of sugar produced in a sugar factory decreases by eight percent annually during the years 1401 to 1405. As a result, the amount of water consumed each year is ninety-two percent of the previous year. Suppose the cost of factory water consumption in 1401 is $ 80,000. With the annual inflation rate of twelve percent, get the current value of the factory water consumption. Use a payment set with a geometric slope to calculate the current value.

Q3.The amount of sugar produced in a sugar factory decreases by eight percent annually during the years 1401 to 1405. As a result, the amount of water consumed each year is ninety-two percent of the previous year. Suppose the cost of factory water consumption in 1401 is $ 80,000. With the annual inflation rate of twelve percent, get the current value of the factory water consumption. Use a payment set with a geometric slope to calculate the current value.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter6: How Statisticians Measure Inflation

Section: Chapter Questions

Problem 6TY

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