SOLUTION: How long will it take for prices in the economy to double at a 6% annual inflation rate? Round to the nearest hundredth.

Algebra ->  Customizable Word Problem Solvers  -> Misc -> SOLUTION: How long will it take for prices in the economy to double at a 6% annual inflation rate? Round to the nearest hundredth.       Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 227888: How long will it take for prices in the economy to double at a 6% annual inflation rate? Round to the nearest hundredth.
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
p%5Bn%5D=+p%5B0%5D%2A%281.06%29%5En (where n= number of years
and p[0] = prices the beginning of the 1st year when n=0)
When is p%5Bn%5D+=+2p%5B0%5D?
2p%5B0%5D=+p%5B0%5D%2A%281+%2B+.06%29%5En
2+=+%281.06%29%5En
Take the log of both sides
log%282%29+=+n%2Alog%281.06%29
.301+=+n%2A.0253
n+=+11.89
It will take 11.89 years for inflation to double