SOLUTION: If the inflation rate were 4%, use the formula for continuous compounding to find the number of years, to the nearest tenth, for a $1 item to cost $2.

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Hi,

Re reply:   2 = e^.04t  ,   ln2 / .04 = t,  t = 17.3 years 

If the inflation rate were 4%, How long before $1 becomes $2



 

  2 = e^.04t  ,   ln2 / .04 = t,  t = 17.3 years