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:

Epidemiology

The study of the causes and control of diseases.

Incidence

The number of new cases of a disease within a specified time, usually 1 year.

Distribution

In statistics and business, refers to the way in which values, assets, or products are spread out or disbursed across different areas or among various stakeholders.

T Cells

A type of white blood cell that plays a central role in the immune response, assisting in the protection against pathogens.