he value of your investment increased by 9.77% last year, and your purchasing power decreased by 1.22%. What was the approximate inflation rate?
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The value of your investment increased by 9.77% last year, and your
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- Your investments increased in value by 14.2 percent last year but your purchasing power increased by only 5.4 percent. What was the approximate inflation rate?Your investments increased in value by 16.3 percent last year, but your purchasing power increased by only 7.5 percent What was the approximate inflation rate? (Enter your answer as a percent rounded to 1 decimal place.)An investment had a nominal return of 11.8 percent last year. If the real return on the investment was only 8.7 percent, what was the inflation rate for the year?
- If the velocity of circulation is constant, real GDP is growing at 3 percent a year, the real interest rate is 2 percent a year, and the nominal interest rate is 7 percent a year, calculate the inflation rate, the growth rate of money, and the growth rate of nominal GDP.Say you own an asset that had a total return last year of 10.4 percent. If the inflation rate last year was 4.3 percent, what was your real return?An investment had a nominal return of 10.6percent last year. If the real return on investment was only 6.3 percent, what was the inflation rate for the year? a. 17.57% b. 3.89% c. 10.73% d. 4.49%
- If an investment grew by 9% while it had a change in purchasing power of 7%, what was the inflation rate over the period? (Convert your answer to a percent but enter numbers only in your response.)In the country of Orcam, the velocity of money is constant. Real GDP grows by 1 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 14 percent. A) Calculate the growth rate of nominal GDP. b. Calculate the inflation rate. I need only text so i can copy it pleaseGiven the cash flows in actual dollars provided in the following table, convert the cash flows to equivalent cash flows in constant dollars if the base year is time 0. Assume that the market interest rate is 16% and that the general inflation rate(f) is estimated at 4% per year. n Cash Flow (In Actual Dollars) 0 $20,5004 $41,5005 $36,5007 $55,500
- 2. If the bank paid me 9.98% interest per year and if my actual return (the increase in my purchasing power) was only 5.25%, what was the inflation rate during the year? (Show Work)Suppose that $1,000 is deposited each year for five years into an equity (common stock) account earning 8% per year. During this period, general inflation is expected to remain at 3% per year. At the end of five years, what is the dollar value of the account in terms of today’s purchasing power (i.e., real dollars)?For prices that are increasing at an annual rateof 5% the first year and 8% the second year, determine the average inflation rate ( f ) over the twoyears.