The Purchasing Power of a Dollars After T Years of R

question 75

Multiple Choice

The purchasing power of A dollars after t years of r% inflation is given by the model P $\mathrm { P } = \mathrm { Ae } ^ { - \mathrm { rt } }$ . Assume the inflation rate is currently 6.6%. How long will it take for the purchasing power of $1.00 to be worth $0.67?
Round the answer to the nearest hundredth.

• A) 6.07 years
• B) 0.61 years
• C) 0.06 year
• D) 10.15 years

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Definitions:

Alternating Current Frequency

The number of cycles per second in an alternating current (AC) waveform, typically measured in hertz (Hz).

Revolutions Per Minute

The unit of measure for rotational speed, indicating the number of full rotations completed by an object in one minute.

Power Triangle

A graphical representation in electrical engineering that shows the relationship between real power, reactive power, and apparent power in an AC circuit.

Power Factor

A dimensionless number representing the ratio of real power flowing to the load to the apparent power in the circuit, indicating efficiency in electrical systems.