134k views
4 votes
the annual rate of inflation is given by the formula I = (p2/p1)^1/n - 1, where p1 is the initial price of an item and p2 is the final price of an item over a period of n years. In 1980, the average price of an ounce of gold was $850. By 2011, the average price was $1,800. In this situation, what is n?

User Gvt
by
5.9k points

1 Answer

1 vote

Answer:

The value of
n is 31 years.

Explanation:

The given equation is formed by different variables, where
n indicates the period of time in years where the rate of inflation is calculated.

In this case, we have a period from 1980 to 2011. The difference between these years would be the period of time used to find the inflation rate.


2011-1980=31

Therefore, the value of
n is 31 years.

User Ikky
by
7.7k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.