Asked by anonymous
If the price of an item increases from p1 to p2 over a period of n years, the annual rate of inflation can be modeled by i = (p2/p1)^1/n
-1
In 1945, the average value of a home was $3000. In 2012 the average value was $200,000. What was the rate of inflation for a home?
-1
In 1945, the average value of a home was $3000. In 2012 the average value was $200,000. What was the rate of inflation for a home?
Answers
Answered by
Steve
so, since you have the formula and the numbers, what's the problem?
What did you get?
What did you get?
Answered by
anonymous
The rate of inflation is 0.064688?
(200000/3000)^(1/67) -1 = 0.064688
(200000/3000)^(1/67) -1 = 0.064688
Answered by
Steve
looks good to me. Though I'd probably have said that the rate of inflation was 6.47%
Answered by
Dog
Bark
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.