If inflation has been running at 2.2% per year and a washing machine costs $460 today, what would it hace cost three years ago? What is the interest rate per period? i=
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If inflation has been running at 2.2% per year and a washing machine costs $460 today, what would it hace cost three years ago? What is the interest rate per period?
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- The inflation rate over a 10-year period for an item that now costs $1000 is shown in the following table. (a) What will be the cost at the end of year10? (b) Do you get the same cost using an average inflation rate of 5% per year through the 10-year period? Why?If the inflation rate is 4.95% compounded annually, how long will it take for prices to double? yearsIf you deposit $12,000 in a bank account that pays a 4% interest compounded monthly for five years, what would be your economic loss if the general inflation rate is 5% during that period?
- Interest RatesSuppose that you make a loan of $1,500 to your friend at a rate of 10% interest because you expect the inflation rate to be 5%.a) By how much does your purchasing power increase once the loan is completely paid off?b) Assuming that after the loan was repaid, you discovered that inflation rate over the life of the loan was only 2%. Who gained?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 rate of inflation is 3.9% per year number of years from today. p(t)=800(1.039)^(t)
- You just made an investment in an insurance policy that is guaranteed to pay you $2.6 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 3.7% per year over the 20-year period?The purchasing power of this amount is. Please answer correct calculation asap plz Don't answer by pen paper plzIf the inflation rate is 4.8% per year and themarket interest rate is known to be 10.2% per year,what is the implied real interest (inflation-free) ratein this inflationary economy?Omar's current annual salary is $54,000. How much will he need to earn (in dollars) 10 years from now to retain his present purchasing power if the rate of inflation over that period is 2%/year? Assume that inflation is continuously compounded. (Round your answer to two decimal places).
- A retired couple has a fixed income of $3,500 per month. Assuming an annual inflation rate of 7% (compounded annually), what is the purchasing power (in dollars) of their monthly income in 5 years? (Round your answer to the nearest cent.)there is a new calendar beginning. Year 0 because it just started. annual inflation rate has been calculated since the Zero Year. these annual inflation follow a pattern. Therefore, %1 in year1, %2 in Year 2, 3% year3. This new calendar uses the hexadecimal system. So after year 9 comes 10% for Year A ,11% for Year B,12% for Year C, 13% for Year D,14% for Year E, 15% for Year F, and then 0% for 10. How much if we calculate the average inflation rate during the 8192 New Year of this new calendar, which occurred at the end of 2000?Assuming that the inflation rate from 2018 through 2020 is 6% per year: a) What would be the real value of a $55,000 income in each of the three years? b) What does the real income computed for 2019 mean?