document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1194036>Question 1194036</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The Consumer Price Index is increasing at a rate of 5% per year. By what factor will prices increase in 2 years. Use the approximate doubling time formula (rule of 70). </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #826114 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=826114\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the consumer price index is increasing at a rate of 5% per year.<BR>\n" );
document.write( "in 2 years, the average consumer price will be 1.05 ^ 2 = a factor of 1.1025 which is 10.25% higher than it is today.<BR>\n" );
document.write( "i don't believe the rule of 70 applies here.<BR>\n" );
document.write( "the rule of 70 says that the consumer price should double in 70/5 = 14 years.<BR>\n" );
document.write( "1.05 ^ 14 = 1.979931599 which is approximately double the price it is today.<BR>\n" );
document.write( "the rule of 70 appears to be a good approximation of when the consumer price index will be double what it is today, but that doesn't help in determining what the consumer price index will be 2 years from now, as far as i know.<BR>\n" );
document.write( "let me know if you have any questions.<BR>\n" );
document.write( "theo\r<BR>\n" );
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