Assume the Cost of a Gallon of Milk Is $2

question 232

Multiple Choice

Assume the cost of a gallon of milk is $2.60. With continuous compounding, find the time it would take the cost to be 4 times as much (to the nearest tenth of a year) , at an annual inflation rate of 6%.

• A) 23.1 years
• B) 35.9 years
• C) 0.1 year
• D) 8.5 years

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