SOLUTION: I cannot figure this one out. I do not think there were enough values given to solve it. Please help. How long will it take for prices in the economy to double at 7% annual infl

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Question 211358: I cannot figure this one out. I do not think there were enough values given to solve it. Please help.
How long will it take for prices in the economy to double at 7% annual inflation rate? Use the exponential growth model P(t)=P0e^kt. Round to the nearest year.
Answer by ankor@dixie-net.com(22740) About Me  (Show Source):
You can put this solution on YOUR website!
How long will it take for prices in the economy to double at 7% annual inflation rate? Use the exponential growth model P(t)=P0e^kt.
:
Let Po = 1
Let P(t) = 2
Let k = .07
:
e^(.07t) = 2
.07t*ln(e) = ln(2)
:
Find the nat log of both sides; ln of e = 1, therefore
.07t = .693147
t = .693147%2F.07
t = 9.9 ~ 10 years
:
:
Check solution on a good calc: enter e^(.07*9.9) = 1.999 ~ 2