The impact of inflation on a fixed pension can be severe. If P represents the purchasing power (in dollars) of a $40,000 pension, then the effect of a 2% inflation rate can be modeled by the differential equation , where t is in years. Find the purchasing power of the pension after 35 years. Round to the nearest dollar.
A) $25,822
B) $23,836
C) $15,890
D) $29,795
E) $19,863

Question

The impact of inflation on a fixed pension can be severe. If P represents the purchasing power (in dollars) of a $40,000 pension, then the effect of a 2% inflation rate can be modeled by the differential equation  , where t is in years. Find the purchasing power of the pension after 35 years. Round to the nearest dollar. ​
A) $25,822 
B) $23,836 
C) $15,890 
D) $29,795 
E) $19,863

Quizplus · Accepted Answer

The Answer of The impact of inflation on a fixed pension can be severe. If P represents the purchasing power (in dollars) of a $40,000 pension, then the effect of a 2% inflation rate can be modeled by the differential equation  , where t is in years. Find the purchasing power of the pension after 35 years. Round to the nearest dollar. ​
A) $25,822 
B) $23,836 
C) $15,890 
D) $29,795 
E) $19,863

The Impact of Inflation on a Fixed Pension Can Be