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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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    https://brainmass.com/math/functional-analysis/computing-cpi-double-value-year-exponential-model-585972

    Solution Preview

    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 ...

    Solution Summary

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

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