Homework Answers
Number of years between 1972 and 2013 = 41
If average annual inflation rate be r, then
$16.41 x (1 + r)41 = $46.04
(1 + r)41 = 2.8056
Taking 41st root on each side,
1 + r = 1.0255
r = 0.0255
r = 2.55% ~ 3%
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