SOLUTION: Assume the cost of a loaf of bread is 4$. With continuous compounding, find the time it would take for the cost to triple at an annual inflation rate of 6%

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Question 758994: Assume the cost of a loaf of bread is 4$. With continuous compounding, find the time it would take for the cost to triple at an annual inflation rate of 6%
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!



Where is the future value, is the present value, is the base of the natural logarithms, is the rate expressed as a decimal, and is the number of years.

For the question asked, it doesn't matter what the original value is, only that the ratio: , so:



Solve for . Hint: Take the natural log of both sides and then use and .

John

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