In 1982 the inflation rate hit 16%. Suppose that the average cost of a textbook in...

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In 1982 the inflation rate hit 16%. Suppose that the average cost of a textbook in 1982 was $15. What was the expected cost i

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Answer 1

Answer #1

Cost in 2017 = (15)e^0.16*35

Cost in 2017 = $4,056.40

2.

135 = (15)e^30r

r = 7.32%

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Answer 2

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