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Computing CPI and double value year using exponential model

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The U.S. Consumer Price Index is approximated by A(t) = 100e.024t where t measures the number of years since 1990. For example, A(12) is about 133. This means that the amount of goods that could be purchased for $100 in 1990 cost about $133 in 2002 (= 1990 + 12).

Use this function to compute:

a. The cost of $100 worth of goods (1990 prices) in 2014.

b. Determine the year when costs will be 200% higher than the costs in 1990.

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This solution gives detailed steps explaining how to compute CPI and double value year using an exponential model.

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a. Since A(t) = 100e.024t where t measures the number of years since 1990, we can treat t=0 in year 1990.
So t=1 in year ...

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