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Gilbert Strang, Calculus, 3rd edition (Wellesley-Cambridge Press; MIT OpenCourseWare RES.18-001) §6.3 Growth and Decay in Science and Economics, #42 · Differential Equations · Applications

Dollar bills decrease in value at … per year because of inflation

This problem is about the mathematics of finance.

Dollar bills decrease in value at $c = - .04$ per year because of inflation. If you hold $1000, w ha t i s t h e d ecr e a se in$ dt $y e a r s ? A tw ha t r a t e$ s$ should you print money to keep even?

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Gilbert Strang, Calculus, 3rd edition (Wellesley-Cambridge Press; MIT OpenCourseWare RES.18-001) · §6.3 Growth and Decay in Science and Economics, #42

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