a year. In 19 years how much will you need to earn per year to maintain the same purchasing power if inflation is 1.50% per year? Your Answer:
Q: Give an example of "administrative costs and inefficiencies of inflation that happened in Lebanon
A: Administrative costs are defined as costs or expenses incurred by an organization which are not…
Q: If the rate of Inflation is 14 percent per year, the price level will double In about Multiple…
A: Given, Rate of inflation = 14%
Q: If the inflation rate is 3% per year, how many years will it take for the cost of an item to double,…
A: Given:Inflation Rate=3% per year
Q: What is the average inflation rate?
A: The rise in the price of services and commodities over time is said as inflation.
Q: The current inflation is 10%, and it is considered as too high. If the sacrifice ratio is four. How…
A: Microeconomics is that the study of however individuals create small-scale selections. It differs…
Q: In 2002, the population of Province P was 950,000, and its income was P 4.7B. In 2003, the…
A: Given: 2002: Population: 950000, income=4.7 B 2003: Population: 10,00,000, income=5.1 B
Q: What are the types of Inflation?
A: Inflation is said to a sudden rise in the prices of the goods and services over a period of time in…
Q: The "Rule of 72" is a reliable guide to the impact of inflation. It is based on dividing 72 by the…
A: The rule of 72 basically estimates the number of years in which any investment/GDP/etc doubles with…
Q: You would like to buy a house that is currently on the market at $15,000, but you cannot afford it…
A: The market value (present value) = $15000 Number of years (n ) = 15 years Interest rate = 8%
Q: You are a social media business with excess capacity of 50% on your computer server; if you stay…
A: The opportunity cost is the gain forgone for the other alternative or it is the next best available…
Q: An economist has predicted that there will be a 7% per year inflation of prices during the next 10…
A: Given Information: Predicted inflation rate = 7% = 0.07% Years = 10 years Item's present price = $10…
Q: To find the average inflation rate, how can we establish the equivalence?
A: Average inflation rate can be referred as the effect of changing yearly inflation rate over a period…
Q: How can we determine the economic loss (or gain) in present worth caused by inflation?
A: Present worth is defined as the present value of the future amount of money or income for a given…
Q: If you are looking for a 4% real return (inflation-free interest) on your investment, would you be…
A: The nominal interest rate can be calculated as follows: Thus, the nominal interest rate is 9.2%
Q: Despite low rates of inflation, the cost of a college education continues to skyrocket. This is a…
A: On average, tuition has increased 100% since 2001, even after accounting for inflation. In recent…
Q: Over the last 10 years, the average rate of inflation has been 1.61%. what is the purchasing power…
A: Inflation is the increase in prices of goods and services over a given period of time. Purchasing…
Q: 2020 quantity 50 20 5 Assume a hypothetical economy where consumers buy only potatoes, meat and…
A: Inflation is the rate at which the value of a currency is falling and, consequently, the general…
Q: how to calculate inflation rate of 10 consecutive years of a country with the gdp growth rate?
A: Inflation is the process through which the cost of goods and services rises over time, lowering the…
Q: Suppose a family's Income increases by 5 percent at the same time that inflation Is 2 percent. Then…
A: Change in real income can be calculated as follows.
Q: QUESTION 10 If prices grow by 2.9% every year, over 9 years, what is the total inflation rate? Write…
A:
Q: f inflation is 4 percent per year and you receive a 3 percent raise in income, t
A: Inflation 4% Income rises by 3%
Q: f a country’s population growth rises faster than its economic growth, what type of inflation will…
A: The growth in population in any nation will lead to an increase in the demand for all goods and…
Q: With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest…
A: The bank is more concerned about a real interest rate. The real interest rate = Nominal interest…
Q: Suppose that you also take out a $1,000 loan at the Cavalier Credit Union. The loan agreement…
A: First, we need to understand the difference between the nominal interest rate and the real interest…
Q: Define the term inflation-adjusted required rate of return?
A: The required rate of return refers to the minimum level of a return that is expected out of an…
Q: The "Rule of 72" is a reliable guide to the impact of inflation. It is based on dividing 72 by the…
A: The rule of 72 basically estimates the number of years in which any investment/GDP/etc. doubles with…
Q: rue or False 1. Inflation is the real reason why our country cannot just print more bills or…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Economic growth and money growth rates are 4% and 9%, respectively. Then, the rate of inflation is
A: The data presented in the question above is as follows:- Economic growth = 4% Money growth rates =…
Q: A piece of land purchased by Ali earlier, is not going to earn profit by selling it during high…
A: Disclaimer ;-as you posted multiple questions we are supposed to solve the first one only.…
Q: Over the last 10 years, the average rate of inflation has been 1.51%. What is the purchasing power…
A: Inflation refers to the increase in the general price level in an economy from one year to another.…
Q: how important is the inflation for the common people in the community? explain.
A: The growth in the average price level of a basket of selected goods and services in an economy over…
Q: Your pension is $8,000 per month when you the next year, inflation is 1%. If your pension is indexed…
A: Inflation decreases our purchasing power so Pension income is increased to compensate for that. You…
Q: oger Marquez purchases a lot for $ 40,000 cash and plans to sell it after 5 years for $ 122,461. If…
A: Nominal Interest Rate = Real Interest Rate and Inflation Rate (1 + i ) = ( 1 + r ) * ( 1 + c )…
Q: An economist has predicted 2% inflation during the next 10 years. How much will an item that…
A: The future value can be calculated by using the following formula:
Q: Why does the ‘inflation tax’ transfer resources from working people to the government? Explain…
A: In economics, inflation is defined as the gradual rise in the price of goods and services in a given…
Q: How many years will it take for the dollar's purchasing power to be one-thirdwhat it is now, if the…
A: The future value of money can be calculated by the formula, F = P (1+r)n where F is the future…
Q: If the CPI was 110 last year and is 121 this year, what is this year’s rate of inflation? What is…
A: CPI or the Consumer Price Index refers to the price indices for the basket of commodities used for…
Q: The CPI in period 1 is 150 and the CPI in period 2 is 200. What is the rate of inflation between…
A: Consumer price index (CPI) measures the price change of a particular bundle of goods from different…
Q: Determine the economic loss or gain in the present worth caused by inflation?
A: Present worth is defined as the present value of the future amount of money or income for a given…
Q: The inflation rate is expected to be 8% per year into the foreseeable future. How many years will it…
A: The purchasing power of a currency basically refers to as the quantity of products or services that…
Q: Study the associated figure. Adjusted for inflation, during which years during the period shown did…
A: As per the graph, in 1950 – 52, the actual price of gas was lowest. But, if seen in terms of 2016…
Q: What are some of the costs that inflation is imposing on Zimbabweans?
A: The term "inflation" refers to an increase in the general price level of the economy. Hyperinflation…
Q: What is the projection of the BSP regarding the inflation in the coming months?
A: The economists at BSP forecast the inflation rate and try to frame the policies according to it. It…
Q: The inflation rate between the years 2000 and 2001 was 2.45%. Based on this information, a basket of…
A: The inflation has increased between these two periods. Hence, price that is paid in 2001 would be…
Q: Consider an economy that has a steady inflation rate of 1.5 percent per year. In such an economy, in…
A: Answer: Initial value (P) = $1 Amount needed/final amount (A)= $1/2 (amount is half a dollar…
Q: Imagine that the interest rate on your savings account is 1.5% APR and inflation is 2% per year.…
A: Inflation basically refers to the rise in the average price level of goods and services in an…
Q: Jeff just received a refund of $2,178 from his family physician. This was anoverpayment on his…
A: Future worth can be calculated as follows:…
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- You would like to buy a house that is currently on the market at $85,000, but you cannot afford it right now. However, you think that you would be able to buy it after 4 years. If the expected inflation rate as applied to the pricepri this house is 6% per year, what is its expected price after four years?If the inflation rate is 4.95% compounded annually, how long will it take for prices to double? yearsJenna plans to donate annually to her favorite charity. She wants her annual donation to have the equivalent buying power of $750 in present/today's dollars. The annual inflation is 3%. How much should donations be for the first 5 years? She gets a check for $2,250, and places it into a fund that earns interest of 18% annually. How many years can her $2,250 check pay for including the 18% annual growth?
- The cost of first-class postage has risen by about 5% per year over the past 30 years. The U.S. Postal Service introduced a one-time forever stamp in 2008 that cost 41 cents for first-class postage (one ounce or less), and it will be valid as first-class postage regardless of all future price increases. Let’s say you decided to purchase 1,000 of these stamps for this one-time special rate. Assume 5% inflation and your personalMARR is 10% per year (im). Did you make a sound economical decision?How much must you invest exactly 5 years from now to have $500,000 in today’s buying power 20 years from now? You can invest your money at 10% per year and inflation runs 4%.You would like to buy carcar t is currently on themarket at $85,000, but you cannot afford it right now. However, you think that youwould be able to buy it after 4 years. If the expected inflation rate as applied to the priceof this car is 6% per year, what is its expected price after 4 years?
- A man desires to have a preplanned amount in a savings account when he retires in 20 years. This amount is to be equivalent to $30,000 in today’s purchasing power. If the expected average inflation rate is 7% per year and the savings account earns 5% interest, what lump sum of money should the man deposit now in his savings account?Inflation has been a reality for the general economy of the U.S. in many years. Given this assumption, calculate the number of years it will take for the purchasing power of today’s dollars to equal onethird of their present value. Assume that inflation will average 2.5% per year.An engineer who is now 65 years old began planning for retirement 40 years ago. At thattime, he thought that if he had $1 million when he retired, he wouldhave more than enoughmoney to live his remaining life in luxury. Assume the inflation rate over the 40-year timeperiod averaged a constant 3.7% per year.a) What is the CV purchasing power of his $1million at age 65? (Hint: Use the day he started 40 years ago as the base year.)b) How manyfuture dollars should he have accumulated over the 40 years to have a CV purchasing powerequal to $1.3 million at his current age of 65?
- A machine cost ₱2M today. If inflation is 6% per year and the interest is 10% per year, whatwill be the appropriate future worth of the machine adjusted for inflation in 5 years.A software company’s labor requirements currently cost $350,000/year. The labor-hour requirements are expectedto increase by 10 percent per year over the next 5 years. If inflation is 4 percent, determine the labor costs after5 years usinga. then-current dollars.b. constant-worth dollars.If the effective annual interest rate is 8.00% per year and inflation is 3.25% per year what is the real effective annual interest rate with inflation considered?