Question

In a country where inflation is a concern, prices have risen by 50 % over a 3-year period.

(a) By what percent B do the prices rise each year?
Find the time t it takes for prices to rise by 8%

Enter your answers to two decimal places.

b = ____ %
t = _______ years

(b) Continuous Growth rate to model inflation by function of the form P= Poe^kt ( o is not zero, it is p naught)

Enter your answer in four decimal places

k = ___%

Answer 1

1.5 = (1+r)^3
log 1.5 = 3 log (1+r)
1 + r = 1.1447
r = .145
so 14.5 percent

1.08 = 1.1447^n
find n

continuous
1.5 = e^3k
ln .5 = 3 k