Assume the Cost of a Car Is $21,000

question 387

Multiple Choice

Assume the cost of a car is $21,000. With continuous compounding in effect, find the number of years it would take to double the cost of the car at an annual inflation rate of 6.2%. Round the answer to the nearest hundredth.

• A) 11.18 yr
• B) 160.52 yr
• C) 1.61 yr
• D) 171.70 yr

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Definitions:

Organic Product

A compound resulting from an organic reaction, often comprising carbon-based structures.

Reaction

A process where substances, known as reactants, are converted into different substances, referred to as products, through chemical change.

Reaction

An action where materials combine and create new compounds that possess distinct characteristics.

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