An automobile that cost $24,500 in 2018 had an equivalent model 4 years later that cost $29,250. If the increase is attributed to inflation, what was the average annual rate of inflation?
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An automobile that cost $24,500 in 2018 had an equivalent model 4 years later that cost $29,250. If the increase is attributed to inflation, what was the average annual rate of inflation?
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- What was the approximate value of the inflation rate in Q4 of 2021?The future amount of P100,000 for a period of 8 years is equal to P341,655.49. Considering money is worth 10% per year with an inflation rate of "x " per cent per year, find the value of inflation rate.You just made an investment in an insurance policy that is guaranteed to pay you $1.8 million 20 years from now provided you live that long. What will be the purchasing power of that amount with respect to today’s dollars if the market interest rate is 8% per year and the inflation rate stays at 3.8% per year over the 20-year period?
- If the market interest rate is 12% per year and the inflation rate is 5% per year, the number of future dollars in year 7 that will be equivalent to $2000 now is best represented by the equation: (a) Future dollar amount = 2000(1 + 0.198)7 (b) Future dollar amount = 2000/(1.198)7 (c) Future dollar amount = 2000(1 + 0.12)7 (d ) Future dollar amount = 2000/(1.07)7The cost of a well-equipped F-150 truck was $29,350 three years ago. If the cost increased only by the inflation rate and the price today is $33,015, the inflation rate over the 3-year period was closest to: (a) 3% (b) 4% (c) 5% (d ) 6%You are saving to buy a car which in 2022 costs $30,000. You intend to make 36 equal consecutive payments to an account starting one month from now. The interest rate is .5% per month, compounded monthly. If the inflation rate is 4% per year compounded annually, how much in actual dollars should the periodic payments be.
- Maintenance costs for pollution control equipment on a pulverized coal cyclone furnace are expected to be $80,000 now and another $90,000 threeyears from now. The CFO of Monongahela Power wants to know the equivalent annual cost of the equipment in years 1 through 5. If the companyuses a real interest rate of 12% per year and the inflation rate averages 4% per year, what is the equivalent annual cost of the equipment?A mutual fund investment is expected to earn 11% per year for the next 25 years. If inflation will average 3% per year during this 25-year period of time, what is the compounded value (in today’s dollars) of this savings vehicle when $10,000 is invested now?According to the College Board, the average in-state tuition and fees at public 4-year colleges and universities increased from $1780 in 1990 to $9650 for the 2016–2017 school year (per full-time equivalent student). Calculate the relative change in public college cost over this time period, and compare it to the overall rate of inflation as measured by the CPI.
- Provided the inflation rate is f percent per year, to determine the purchasing power of $10,000 ten years from now, the $10,000 must be:a. divided by (1 + f )10b. multiplied by (1 + f )10c. divided by (1+ 0.10) fd. divided by (1 + f )The Bureau of Labor Statistics has a website (www.bls.gov) that contains a Consumer Price Index inflation calculator that uses the average CPI to adjust the purchasing power of money over different periods of time. The CPI index value has been calculated every year since 1913. The calculator indicated that $1 million in 1913 would have the same purchasing power as $23,930,909 in 2016. What was the average inflation rate over this 103-year time period?A country is experiencing an inflation rate of exactly 100 percent per month for 4 months. At the end of 4 months, the price level has increased _____ times in relationship to the initial period.