Question
Ken bought a car last year to drive back and forth to work. Last year he spent $1,098 on gas. This year, it was $1,562.
Ken bought a car last year to drive back and forth to work. Last year he spent $1,098 on gas. This year, it was $1,562. What is the inflation rate?
The equation, y=20,000(.095)^x represents the purchasing power of $20,000, with an inflation rate of five percent. X represents the number of years. Use the equation to predict the purchasing power in five years. Round to the nearest dollar.
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Financial Management Core Concepts
Authors: Raymond Brooks
4th Edition
134730417, 134730410, 978-0134730417
