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the av 61. Inflation If the average inflation rate is 2%, how long is it until purchasing power is cut in half? 62 Infloti

the av 61. Inflation If the average inflation rate is 2%, how long is it until purchasing power is cut in half? 62 Infloti

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section10.3: Geometric Sequences
Problem 80E
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n incoming increasing about 0.7% per year, determine the per debt (total debt divided by population) in 2030. apt lation is a term used to describe the erosion of the purchasing power ofJ money. S1000 worth of purchasing power now will have only $970 worth of purchasing X 1000 = 30) has been eroded due to inflation. In general, if the rate of inflation 1 $P will purchase after n years is A = P• (1 – r)" will be the 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? will be the only $950 bond is a bond that is sold now at a discount and will puy its face value at the epon redeemed 67. Time to Double or Triple an investment The formula willing to In m t = r n In 1 + onsidering nd at her er college urn of 6% ne bond? 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 Tace-value, - now if its a $25,000 ears, what rate of 5%? (c) Give a derivation of this formula.
Transcribed Image Text:n incoming increasing about 0.7% per year, determine the per debt (total debt divided by population) in 2030. apt lation is a term used to describe the erosion of the purchasing power ofJ money. S1000 worth of purchasing power now will have only $970 worth of purchasing X 1000 = 30) has been eroded due to inflation. In general, if the rate of inflation 1 $P will purchase after n years is A = P• (1 – r)" will be the 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? will be the only $950 bond is a bond that is sold now at a discount and will puy its face value at the epon redeemed 67. Time to Double or Triple an investment The formula willing to In m t = r n In 1 + onsidering nd at her er college urn of 6% ne bond? 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 Tace-value, - now if its a $25,000 ears, what rate of 5%? (c) Give a derivation of this formula.
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