The impact of inflation on a fixed pension can be severe. If P represents the purchasing power (in dollars) of a $50,000 pension, then the effect of a 2.5% 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)$27,096
B)$25,012
C)$16,674
D)$31,265
E)$20,843

Question

The impact of inflation on a fixed pension can be severe. If P represents the purchasing power (in dollars) of a $50,000 pension, then the effect of a 2.5% 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)$27,096 
B)$25,012 
C)$16,674 
D)$31,265 
E)$20,843

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 $50,000 pension, then the effect of a 2.5% 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)$27,096 
B)$25,012 
C)$16,674 
D)$31,265 
E)$20,843

The Impact of Inflation on a Fixed Pension Can Be