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If a retire couple has a fixed income of $60,000 per year, the purchasing power (real value of money) after t years of 5% inflation
If a retire couple has a fixed income of $60,000 per year, the purchasing power (real value of money) after t years of 5% inflation is given by the equation P = 60,000 (0.95t) dollars.
a) What is the purchasing power of their income after 4 years?
b) Determine how many years until their purchasing power will be less than $30,000.
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