Answer:
14 years
Step-by-step explanation:
here;
A = P(1-r)^n
we want to cut the purchasing power by half. What this means is that we will be making the amount half of what it used to be
what we want to calculate here is the value of n that makes A = P/2
r = 4.8% = 4.8/100 = 0.048
P/2 = P(1-0.048)^n
take off p from both sides
0.5 = 0.952^n
Take the log of both sides
log 0.5 = log 0.952^n
log 0.5 = n log 0.952
n = log 0.5/log 0.952 = 14.01
Which means the number of years is 14
