The purchasing power​ (real value of​ money) decreases if inflation is present in the economy. For​ example, the purchasing power of ​$39,000 after t years of​ 5% inflation is given by the model P=39,000e−0.05t dollars. How long will it take for the value of a ​$39,000 pension to have a purchasing power of ​$19,500 under​ 5% inflation?

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.3: The Natural Exponential Function
Problem 7E
icon
Related questions
Question

The purchasing power​ (real value of​ money) decreases if inflation is present in the economy. For​ example, the purchasing power of

​$39,000

after t years of​ 5% inflation is given by the model

P=39,000e−0.05t

dollars. How long will it take for the value of a

​$39,000

pension to have a purchasing power of

​$19,500

under​ 5% inflation?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Limits and Continuity
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, calculus and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Functions and Change: A Modeling Approach to Coll…
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning