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If the inflation rate is 5.55% compounded annually, how long will it take for prices to double?
Given:
Inflation rate = 5.55%
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- The inflation rate is expected to be 8% per year into the foreseeable future. How many years will it take for the peso's purchasing power to be one-half of what it is now?The annual inflation rate is expected to be 4.78% and the nominal (annual) interest rate is 5.75%. What is the real interest rate?If inflation averages 4 percent per year, how much purchasing power will$1.00 lose in 10 years?
- If the average, long term inflation rate is 3%, how many years does it take for prices to double? 24 years 36 years 12 years 6 yearsAn economy is experiencing inflation at an annual rate of 8%. If this continues, what will P2000 be worth three years from now in terms of today’s pesos?If the inflation rate is expected to be 3% for the next 10 years, what annual income will be needed 10 years from now in order to have the same purchasing power as $25,000 today?
- If the average annual inflation rate is 3.1%,how long will it take for the CPI index to double? (A doubling of the CPI index means purchasing power is cut in half.)Suppose the actual inflation rate is 2% over the next year. Once the loan has been repaid, what is the nominal rate of interest and real rate of interest?All prices and costs are expected to rise at the general inflation rate of 2 percent after 1st year. won't this impact the calculation?
- Suppose 1 year T Bills currently yield 7.00% and the future inflation rate is expected to be constant at 4.70% per year. What is the real risk free rate of return, rf? Round your answer to the nearest tenth of decimal pointSuppose one-year T-bills currently yield 5.00% and the future inflation rate is expected to be constant 1t 3.10% per years. What is the real risk-free rate of return, K*?Suppose 1-year T-bills currently yield 3.86% and the future inflation rate is expected to be constant at 2.35% per year. What is the real risk-free rate of return, r*? ( as a percent and round your final answer to 2 decimal places.)