Collections at a constant value

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Millville is suffering a 1% annual loss of population and property values. Even so, Millville must maintain its tax collections at a constant value of $3.2M. If the inflation rate is 4.5%, what inflation rate in taxes for the remaining taxpayers is required for Millville to attain its goal? (While Millville uses a rate of 6% for the time value of money, that rate is irrelevant to this problem.)

Reference no: EM131810478

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