A farm increases in value from $800,000 to $1,100,000 over a period of 6 years. Use the formula r = (F/P) ^1/n-1 to find the annual inflation rate r to the nearest tenth of a percent, where n is the number of years during which the value increases from P to F.

A farm increases in value from $800,000 to $1,100,000 over a period of 6 years. Use the formula r = (FP) 1/n-1 to find the annual inflation rate r to the nearest tenth of a percent, where n is the number of years during which the value increases from P to F.

Question

Mathematics

Beauty

3 January, 03:09

A farm increases in value from $800,000 to $1,100,000 over a period of 6 years. Use the formula r = (F/P) ^1/n-1 to find the annual inflation rate r to the nearest tenth of a percent, where n is the number of years during which the value increases from P to F.

A farm increases in value from $800,000 to $1,100,000 over a period of 6 years. Use the formula r = (FP) 1/n-1 to find the annual inflation rate r to the nearest tenth of a percent, where n is the number of years during which the value increases from P to F.

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Answers (1)

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Barker · Answer 1

Step-by-step explanation:

The formula representing the the annual inflation rate r is expressed as

r = (F/P) 1/n-1

Where

n represents the the number of years during which the value increases from P to F

A farm increases in value from $800,000 to $1,100,000 over a period of 6 years. This means that

P = $800,000

F = $1,100,000

n = 6

Therefore,

r = (1100000/800000) 1/6-1

r = 1.375/5 = 0.275