The purchasing power P (in dollars) of an annual amount of A dollars after t years of 5% inflation decays according to the following formula.† P = Ae −0.05 t (a) How long will it be before a pension...

P =Ae
^−0.05t

(a) How long will it be before a pension of $75,000 per year has a purchasing power of $30,000? (Round your answer to one decimal place.)



(b) How much pensionA would be needed so that the purchasing powerP is $50,000 after 12 years? (Round your answer to the nearest dollar.)