Posted by **sha** on Thursday, March 3, 2011 at 1:40am.

the purchasing power (in dollars) of an annual amount of A dollars after t years of 5% inflation decays according to

P= Ae^-0.05t

a) how long will it be before a pension of $60,000 per year has a purchasing power of $30,000

b) how much pension A would be needed so that the purchasing power P is $50,000 aftter 15 years?

## Answer This Question

## Related Questions

- math - Jose invests 3250 dollars at 6% interest compounded annually. What will ...
- Math, rates - Which rates are equivalent? 6 U.S. dollars = 18 U.S. dollars 8 ...
- math - Please someone show me how to work this one out? Suppose Caroline is a ...
- economics - Suppose Caroline is a cinephile and buys only movie tickets. ...
- math - We deposited 7,500 dollars into a savings account which pays 3.6 percent ...
- MATH - If C dollars are deposited in an account paying r percent annual interest...
- algebra - Hannah invests $3850 dollars at an annual rate of 6% compounded ...
- algebra - Assume the national debt D increases at an annual rate of 5% and that ...
- math - The price in dollars of a house during a period of mild inflation is ...
- math - If C dollars are deposited in an account paying r percent annual interest...

More Related Questions