Inflation acts like "compounding continuously" so that would be correct.

If you are asking "which", the problem say "By what percent" so the second is correct.If so then should the answer to a) be 0.067294447 or 6.7294447%?

No, you should use the formula you used to get .06729447:Also for b) should the set up be like this?

1(1.067294447)^t = 1.05? Solve for t

If so should the answer to b) be 0.749155419?

[tex]e^{.06729447 t}= 1.05.

Please help me with theses problems. Thank you.