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Question: Inflation. The purchasing power P (in dollars) of an annual amount of A dollars after t years of 5% inflation decays according to P = Ae-0.05t (Source: Viewpoints, VALIC)

(a) How long will it be before a pension of $60,000 per year has a purchasing power of $30,000?

(b) How much pension A would be needed so that the purchasing power P is $50,000 after 15 years?

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  • Category:- Physics
  • Reference No.:- M92590246

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