Question
Suppose that inflation is 3% per year. This means that the cost of an item increases by 3% each year. Suppose a jacket cost $150 in 2011. How long will it take for the jacket to cost $300 dollars?
Answers
Steve
solve for x in
150*1.03^x = 300
1.03^x = 2
x log1.03 = log2
x = log2/log1.03 = 23.45 years
150*1.03^x = 300
1.03^x = 2
x log1.03 = log2
x = log2/log1.03 = 23.45 years