14.) Suppose that the present annual inflation rate is 3.2% and you project that this will...

14.) Suppose that the present annual inflation rate is 3.2% and you project that this will be the maintained. Recall that the inflation rate is the amount a typical collection of primary goods and services will increase in price each year. This is defined by the national government. How many years will it take for the overall level of prices to be 1.75 times what the level is now? (Hint: This a compound interest situation. You will need to use logarithms to solve this problem.) Show work

Expert Solution

Method to calculate log
1. Take square root of the number 15 times
2. Subtract 1 from the result
3. Divide the result from step 2.above by 0.000070271

Then the answer will be the log of the given number.

ekkarill92 answered 1 year ago

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