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?
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
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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?
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