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Inflation Assuming annual compounding, find the time it
Chapter 2, Problem 75A(choose chapter or problem)
Problem 75A
Inflation Assuming annual compounding, find the time it would take for the general level of prices in the economy to double at the following annual inflation rates.
a. 3%
b. 6%
c. 8%
d. Check your answers using either the rule of 70 or the rule of 72, whichever applies.
Questions & Answers
QUESTION:
Problem 75A
Inflation Assuming annual compounding, find the time it would take for the general level of prices in the economy to double at the following annual inflation rates.
a. 3%
b. 6%
c. 8%
d. Check your answers using either the rule of 70 or the rule of 72, whichever applies.
ANSWER:
SOLUTION:
Step 1 of 3:
In this question, assuming annual compounding, find the time it would take for the general level of prices in the economy to double at the following annual inflation rates. (a) 3% (b) 6% (c) 8% (d) Check the answers using either the rule of 70 or the rule of 72, whichever applies.