At an inflation rate of 9 percent, the purchasing power of $1 would be cut in...
At an inflation rate of 9 percent, the purchasing power of $1 would be cut in half in 8.04 years. How long to the nearest year would it take the purchasing power of $1 to be cut in half if the inflation rate were only 4 percent?
a. 12 years
b. 15 years
c. 18 years
d. 20 years
e. 23 years
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Homework Answers
| Future value = present value*(1+ rate)^time |
| 2 = 1*(1+0.04)^Time |
| Time(in years) = 17.66 |
c. 18 years
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