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 $20,000? (Round your answer to two decimal places.) t = yr (b) How much pension A would be needed so that the purchasing power P is $40,000 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 $20,000? (Round your answer to two decimal places.) t = yr (b) How much pension A would be needed so that the purchasing power P is $40,000 after 15 years? (Round your answer to the nearest dollar.)

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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