The purchasing power (real value of money) decreases if inflation is present in the economy. For example, the purchasing power of $35,000 after t years of 8% inflation is given by the model P = 35,000e-0.08t dollars. How long will it take for the value of a $35,000 pension to have a purchasing power of $17,500 under 8% inflation? It will take years. (Type an integer or a decimal rounded to two decimal places as needed.)
The purchasing power (real value of money) decreases if inflation is present in the economy. For example, the purchasing power of $35,000 after t years of 8% inflation is given by the model P = 35,000e-0.08t dollars. How long will it take for the value of a $35,000 pension to have a purchasing power of $17,500 under 8% inflation? It will take years. (Type an integer or a decimal rounded to two decimal places as needed.)
Advanced Engineering Mathematics
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ISBN:9780470458365
Author:Erwin Kreyszig
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Transcribed Image Text:The purchasing power (real value of money) decreases if inflation is present in the economy. For example, the purchasing power of $35,000 after t years of 8%
inflation is given by the model P = 35,000e-0.08t dollars. How long will it take for the value of a $35,000 pension to have a purchasing power of $17,500 under
8% inflation?
It will take years.
(Type an integer or a decimal rounded to two decimal places as needed.)
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