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The purchasing power P (in dollars) of an annual amount of A dollars after t years of 3.1 % inflation (the rate of inflation for November 2023, according to the U.S. Labor Department) decays according to the following formula: P = Ae-0.031t How long will it be before a retirement pension of $90,000 per year has a purchasing power of $20,000? (Round your answer to two decimal places.) Write 1 - 2 sentences on what this means to you without using the phrase "purchasing power."

The purchasing power P (in dollars) of an annual amount of A dollars after t years of 3.1 % inflation (the rate of inflation for November 2023, according to the U.S. Labor Department) decays according to the following formula: P = Ae-0.031t How long will it be before a retirement pension of $90,000 per year has a purchasing power of $20,000? (Round your answer to two decimal places.) Write 1 - 2 sentences on what this means to you without using the phrase "purchasing power."

Algebra for College Students
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter10: Exponential And Logarithmic Functions
Section10.2: Applications Of Exponential Functions
Problem 25PS
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The purchasing power P (in dollars) of an annual amount of A dollars after t years of 3.1 % inflation (the rate of inflation for November 2023, according to the U.S. Labor Department) decays according to the following formula: P = Ae-0.031t How long will it be before a retirement pension of $90,000 per year has a purchasing power of $20,000? (Round your answer to two decimal places.) Write 1 - 2 sentences on what this means to you without using the phrase "purchasing power."
Transcribed Image Text:The purchasing power P (in dollars) of an annual amount of A dollars after t years of 3.1 % inflation (the rate of inflation for November 2023, according to the U.S. Labor Department) decays according to the following formula: P = Ae-0.031t How long will it be before a retirement pension of $90,000 per year has a purchasing power of $20,000? (Round your answer to two decimal places.) Write 1 - 2 sentences on what this means to you without using the phrase "purchasing power."
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