Assume the Cost of a Gallon of Milk Is $3

question 335

Multiple Choice

Assume the cost of a gallon of milk is $3.40. 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) 0.1 yr
• B) 8.5 yr
• C) 0.0 yr
• D) 23.1 yr

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Definitions:

Nutrition

The process of providing or obtaining the food necessary for health and growth, including the study of nutrients and how the body utilizes them.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water, producing oxygen as a byproduct.

Cotyledons

The first leaves that appear from a germinating seed, providing energy to the young plant before true leaves develop.

Endosperm

A tissue produced inside the seeds of most flowering plants following fertilization, which nourishes the developing embryo.