Question

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?

Answer 1

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.