Question 16
Inflation is a continuing general increase in goods and services prices, reducing currency purchasing power. The source model says that 5% annual inflation reduces one million VND to purchasing power 950 thousand VND after one year. In general it uses $A=P(1-r/100)^n$, where $r$ is the average annual percentage rate, $P$ the initial amount and $A$ its value after $n$ years. If 100 million VND has purchasing power 80 million VND after three years, find the average rate, rounded to the nearest percentage point.
The following source mathematical images preserve the printed option/formula/figure variants; text and choices above or below provide clean typesetting.
The following source mathematical images preserve the printed option/formula/figure variants; text and choices above or below provide clean typesetting.