<PRE><B>Question 189926</B>
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%. 
--------------------------------------
A(t) = A(0)(1+r)^t
3*4 = 4(1.06)^t
---
3 = (1.06)^t
Take the log of boh sides to get:
t*log(1.06) = log3
t = (log3)/(log1.06)
t = 18.85 years
===============================
Cheers,
Stan H.
</PRE>