The Purchasing Power of a Dollar Is Decreasing at the Rate

question 412

Multiple Choice

The purchasing power of a dollar is decreasing at the rate of 4.9% annually, compounded continuously. How long will it take for the purchasing power of $1.00 to be worth $0.74? Round answers to the nearest hundredth.

• A) 0.06 yr
• B) 0.61 yr
• C) 6.15 yr
• D) 15.10 yr

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Definitions:

Sexism

Discrimination or bias against people on the basis of their gender.

Classroom

A room or space, typically in a school, where teaching and learning activities take place.

Stereotype

Oversimplified and generalized beliefs about a particular group of people or things, often leading to prejudiced attitudes and actions.

Internal

Pertaining to or situated within something; intrinsic, coming from the inside.