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Assuming continuous compounding, what will it cost to buy a $40 item in 1 years at the following inflation rates? a. 3% b. 4% c. 5% a. The cost at 3% is $. (Round to the nearest cent as needed.) b. The cost at 4% is $ (Round to the nearest cent as needed.) c. The cost at 5% is $. (Round to the nearest cent as needed.)

Assuming continuous compounding, what will it cost to buy a $40 item in 1 years at the following inflation rates? a. 3% b. 4% c. 5% a. The cost at 3% is $. (Round to the nearest cent as needed.) b. The cost at 4% is $ (Round to the nearest cent as needed.) c. The cost at 5% is $. (Round to the nearest cent as needed.)

Algebra and Trigonometry (MindTap Course List)
Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter13: Sequences And Series
Section13.4: Mathematics Of Finance
Problem 21E
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Assuming continuous compounding, what will it cost to buy a $40 item in 1 years at the following inflation rates? a. 3% b. 4% c. 5% a. The cost at 3% is $ (Round to the nearest cent as needed.) b. The cost at 4% is $ (Round to the nearest cent as needed.) c. The cost at 5% is $ (Round to the nearest cent as needed.)
Transcribed Image Text:Assuming continuous compounding, what will it cost to buy a $40 item in 1 years at the following inflation rates? a. 3% b. 4% c. 5% a. The cost at 3% is $ (Round to the nearest cent as needed.) b. The cost at 4% is $ (Round to the nearest cent as needed.) c. The cost at 5% is $ (Round to the nearest cent as needed.)
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