If the inflation rate is 27 compounded annually how long wil

If the inflation rate is 2.7% compounded annually, how long will it take for prices to double? years Round your answer to the nearest tenth of a year Get help: Video

Solution

we have to use the following formula

A=P(1+r)ⁿ

and in this question A=2P

2P=P(1+.027)ⁿ

2=1.027ⁿ

taking log on both sides

log 2= n log 1.027

n=26years