In 1982 the inflation rate hit 16%. Suppose that the average cost of a textbook in 1982 was $25. What was the expected cost in the year 2017 if we project this rate of inflation on the cost? (Assume continuous compounding. Round your answer to the nearest cent.) $  If the average cost of a textbook in 2012 was $150, what is the actual inflation rate (rounded to the nearest tenth percent)?

Q: Suppose that the purchase price of Manhattan in 1626 was recently re-estimated by historians to be…

A: Given that, Annual Amount=$31 Annual rate of interest=5.7% r=0.057 Time (T) = 2015-1626 T=389 years…

Q: In 1982 the inflation rate hit 16%. Suppose that the average cost of a textbook in 1982 was $15.…

A: Detailed explanation mentioned below

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Q: (Assume continuous compounding. Round your answer to the nearest cent.) $ If the average cost of a…

A: Total number of years = 2017-1982 =35 a. Expected cost in 2017 = $20 * e^(35*0.16)

Q: Suppose that the purchase price of Manhattan in 1626 was recently re-estimated by historians to be…

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