91Ó°ÊÓ

Are based on the following table, which shows the 2008 annual inflation rates in several Latin American countries. \({ }^{13}\) Assume that the rates shown continue indefinitely. $$\begin{array}{|l|c|c|c|c|c|c|c|} \hline \text { Country } & \text { Argentina } & \text { Brazil } & \text { Bolivia } & \text { Nicaragua } & \text { Venezuela } & \text { Mexico } & \text { Uruguay } \\ \hline \text { Currency } & \text { Peso } & \text { Real } & \text { Boliviano } & \begin{array}{c} \text { Gold } \\ \text { cordoba } \end{array} & \text { Bolivar } & \text { Peso } & \text { Peso } \\ \hline \begin{array}{l} \text { Inflation } \\ \text { Rate (\%) } \end{array} & 9.2 & 6.3 & 15.1 & 13.8 & 25.7 & 5.0 & 8.5 \\ \hline \end{array}$$ If an item in Argentina now costs 1,000 pesos, what do you expect it to cost 5 years from now? (Answer to the nearest peso.)

You take out a 2-year, \(\$ 5,000\) loan at \(9 \%\) interest with monthly payments. The lender charges you a \(\$ 100\) fee that can be paid off, interest free, in equal monthly installments over the life of the loan. Thinking of the fee as additional interest, what is the actual annual interest rate you will pay?

You wish to accumulate \(\$ 100,000\) through monthly payments of \(\$ 500 .\) If you can earn interest at an annual rate of \(4 \%\) compounded monthly, how long (to the nearest year) will it take to accomplish your goal?

At the start of 1985, the incidence of AIDS was doubling every 6 months and 40,000 cases had been reported in the United States. Assuming this trend would have continued, determine when, to the nearest tenth of a year, the number of cases would have reached 1 million.