Prices in an Economy with a 12% Annual Inflation Rate $\mathrm { P } = p \mathrm { e } ^ { \mathrm { rt } }$

Multiple Choice

Prices in an economy with a 12% annual inflation rate can be modeled by P $\mathrm { P } = p \mathrm { e } ^ { \mathrm { rt } }$ , where r is the inflation rate, t is the time in years, and p is the current price. How long will it take for prices in the economy to double at a
12% annual inflation rate?

A) 6.78 years
B) 5.78 years
C) 23.45 years
D) 9.16 years