SOLUTION: Assume the cost of a loaf of bread is 4$. With continuous compounding, find the time it would take for the cost to triple at an annual inflation rate of 6%
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Question 758994: Assume the cost of a loaf of bread is 4$. With continuous compounding, find the time it would take for the cost to triple at an annual inflation rate of 6%
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
Where 
is the future value, 
is the present value, 
is the base of the natural logarithms, 
is the rate expressed as a decimal, and 
is the number of years.
For the question asked, it doesn't matter what the original value is, only that the ratio: 
, so:
Solve for . Hint: Take the natural log of both sides and then use \ =\ n\log_b(x))
and \ =\ 1)
.
John
Egw to Beta kai to Sigma
My calculator said it, I believe it, that settles it
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