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The purchasing power P of a fixed income of $20,000 per year (such as a pension) after t years of 5% inflation can be modeled

The purchasing power P of a fixed income of $20,000 per year (such as a pension) after t years of 5% inflation can be modeled by

P = 20,000(1.05)t.

(a)

Find the purchasing power after 5 years. (Round your answer to the nearest dollar.)

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