SOLUTION: if inflation is 6% per year, how many years will it take for the price of my car to increase from US$20,000 to US$4,000?

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Question 380203: if inflation is 6% per year, how many years will it take for the price of my car to increase from US$20,000 to US$4,000?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
if inflation is 6% per year, how many years will it take for the price of my car to increase from US$20,000 to US$4,000?
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That is not an increase of price.
If you meant US40,000 the answer would be:
20000(1.06)^t = 40000
1.06^t = 2
t(log(1.06) = log(2)
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t = log(2)/log(1.06)
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t = 11.896 years
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Rounding up you get 12 years.
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Cheers,
Stan H.