SOLUTION: The purchasing power of A dollars after t years of r% inflation is given by the model P = Ae^-rt. Assume the inflation rate is currently 3.8%. How long will it take for the purchas
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Question 1041927: The purchasing power of A dollars after t years of r% inflation is given by the model P = Ae^-rt. Assume the inflation rate is currently 3.8%. How long will it take for the purchasing power of $1.00 to be worth $0.76? Round the answer to the nearest hundredth. Answer by josmiceli(19441) (Show Source):
You can put this solution on YOUR website! = amount in dollars before inflation = amount in dollars after inflation = % inflation = time in years of r% inflation
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Take the natural log of both sides
It will take 7.22 yrs
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check:
close enough
