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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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Answer #1
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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