Time remaining:
calculus homework 4/7

Calculus
Tutor: None Selected Time limit: 0 Hours

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

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Apr 8th, 2015
...
Apr 8th, 2015
Mar 27th, 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