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The purchasing power P (in dollars) of an annual amount of A dollars after t years of 5% inflation decays according to the following formula.+ P = Ae -0.05t (a) How long will it be before a pension of $80,000 per year has a purchasing power of $40,000? (Round your answer to two decimal places.) yr t = (b) How much pension A would be needed so that the purchasing power P is $60,000 after 15 years? (Round your answer to the nearest dollar.)

The purchasing power P (in dollars) of an annual amount of A dollars after t years of 5% inflation decays according to the following formula.+ P = Ae -0.05t (a) How long will it be before a pension of $80,000 per year has a purchasing power of $40,000? (Round your answer to two decimal places.) yr t = (b) How much pension A would be needed so that the purchasing power P is $60,000 after 15 years? (Round your answer to the nearest dollar.)

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section: Chapter Questions
Problem 18T
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The purchasing power P (in dollars) of an annual amount of A dollars after t years of 5% inflation decays according to the following formula.+ P = Ae-0.05t (a) How long will it be before a pension of $80,000 per year has a purchasing power of $40,000? (Round your answer to two decimal places.) t = yr (b) How much pension A would be needed so that the purchasing power P is $60,000 after 15 years? (Round your answer to the nearest dollar.) $
Transcribed Image Text:The purchasing power P (in dollars) of an annual amount of A dollars after t years of 5% inflation decays according to the following formula.+ P = Ae-0.05t (a) How long will it be before a pension of $80,000 per year has a purchasing power of $40,000? (Round your answer to two decimal places.) t = yr (b) How much pension A would be needed so that the purchasing power P is $60,000 after 15 years? (Round your answer to the nearest dollar.) $
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