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With an annual inflation rate of 1.38%, how much did an item that now costs $200 cost 3 years prior?
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- With an annual inflation rate of 1.45%, how much did an item that costs $8000 now cost 3 years prior? Round your answer to the nearest cent.A given item now costs of ₱2,000. The cost of this item in 2years time is ₱2,247.00. The inflation rate per year is __.An item presently costs P2,000. If inflation is at the rate of 8% per year, what will be the cost of the item in three years?
- Suppose that you borrow $60,000 at 9% compounded monthly over five years. Knowing that the 9% represents the market interest rate, you compute the monthly payment in actual dollars as $1245.51. If the average monthly general inflation rate is expected to be 0.25%, determine the equivalent equal monthly payment series in constant dollars.(a) $1159(b) $1375(c) $1405(d) $1415Ten years ago, an item cost Php2,500. The rate of inflation for the first 4 years was 4%, during the next 3 years 6% and for the last 3 years 9%. Assuming that the increase in price were due to inflation alone, what is the average inflation rate during the 10 years?The average cost of a certain model car was $22,000 ten years ago. This year the average cost is $35,000. (a) Calculate the average monthly inflation rate (fm) for this model. (b) Given the monthly rate fm, what is the effective annual rate, f, of inflation for this model? (c) Estimate what these will sell for 10 years from now, expressed in today’s dollars.
- (a) Calculate the perpetual equivalent annual worth in future dollars for years 1 through ∞ for income of $50,000 now and $5000 per year thereafter. Assume the market interest rate is 8% per year and inflation averages 4% per year. All amounts are quoted as future dollars. (b) If the amounts had been quoted in CV dollars, what is the annual worth in future dollars?$1000 accummualtes to $1500 in 5 years time and the rate of inflation is 3% p.a. What is the annual effective real rate of return? Question 6Select one:Select one: A. 5.29% B. 6.38% C. 11.70% D. 2.25%Consider a situation, where (a) the equal-payment cash flow of $1,500 in constant dollars over three years is converted from the (b) equal-payment cash flow in actual dollars over three years. at an annual general inflation rate off= 4%. Also, i = 8.5%. What is the amount A in actual dollars equivalent A' = $1,500 in constant dollars?
- Suppose that you borrow $42,500 at 11.4%compounded monthly over seven years. Knowingthat the 11.4% represents the market interest rate, yourealize that the monthly payment in actual dollars willbe $736.67. If the average monthly general inflationrate is expected to be 0.6%, determine the equivalentequal monthly payment series in constant dollars.Please answer quickly and correctly Inflation is expected to average 4.4% per year for the next 24 years. How much money will be required, 24 years from now, to buy the same amount of goods and services as $1 does today (to the nearest cent)?If the rate of inflation is 3.9% per year, the future price pt (in dollars) of a certain item can be modeled by the following exponential function, where t is the number of years from today. =p (t)= 600(1.039)t Find the current price of the item and the price 10 years from today.Round your answers to the nearest dollar as necessary.