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Unformatted text preview: over the next five years is 3.5%, calculate how many gallons of gasoline Jon will be able to buy at the end of five years. 73. Today, the cost of a song on iTunes is 1.00. Drew has 100 today and could use that 100 to buy 100 songs on iTunes. Instead, Drew decides to invest the 100 at an annual effective rate of interest of 8% for the next four years. At the end of four years, Drew can buy 117 songs on iTunes. Calculate the annual effective inflation rate on iTune songs over the four year period. Answers: 69. 10.24% 70. 5.825% 71. 5.0% 72. 112.675 gallons 73. 3.8430%...
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This note was uploaded on 02/04/2012 for the course MA 373 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.
- Spring '08