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Find the average annual inflation rate during time

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A piece of land was purchased for $170 000 five years ago. Its price has increased in line with inflation and its current value is $200 000.

1. Find the average annual inflation rate during this time. Give your answer correct to two decimalplaces.

2. Find the time required for the land to double in value from its current value of $200 000. Assume that the average rate of inflation will be at 2.5% per annum. Give your answer correct to two decimal places.

Reference no: EM132757882

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