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The purchasing power P (in dollars) of an annual amount of A dollars after t years of 5% inflation decays according to the following formula.†P = Ae-0.05t
(a) How long will it be before a pension of $60,000 per year has a purchasing power of $20,000? (Round your answer to two decimal places.)
t =
(b) How much pension A would be needed so that the purchasing power P is $40,000 after 13 years? (Round your answer to the nearest dollar.)
$
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