What is the purchasing power after given years

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Reference no: EM131781688

Question: Inflation. The purchasing power P of a $60,000 pension after t years of 3% annual inflation is modeled by

P(t) = 60,000(0.97)^t

(a) What is the purchasing power after 20 years?

(b) Graph this function for t = 0 to t = 25 with a graphing utility.

Reference no: EM131781688

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