Time remaining:
calculus homework 4/7

label Calculus
account_circle Unassigned
schedule 0 Hours
account_balance_wallet $5

The purchasing power P (in dollars) of an annual amount of A dollars after t years of 6% inflation decays according to P=Ae^-.06t. Determine how large a pension A needs to be so that purchasing power P is $40,000 after 10 years? (answer 2 decimal places)

Apr 8th, 2015

40,000 = Ae^-.06(10) = Ae^.6

40,000 = 0.5488A

A = 40,000/0.5488 = $72,884.75

Apr 8th, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Apr 8th, 2015
...
Apr 8th, 2015
Jun 28th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer