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In five years, a salary of $56,000 per year with a 55% growth due to cost-of-living adjustment in the fifth year would be
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- Suppose you make a loan of $100 that will be repaid to you in 1 year.if the loan is denominated in terms of nominal interest rate, are you happy or sad if inflation is higher than expected during the year. What if the loan instead had been denominated in terms of a real return.exponential growth equation!! Otherwise will give downvote!!! Thanks in advance!If the real GDP growth rate in the UK is 2.0% on average, then the level of real GDP will be doubled in ____ years. 70 7 23 35
- Sally worked hard all year and put her savings into a mutual fund that paid a nominal interest rate of 6 percent a year. During the year, the CPI increased from 175 to 182 . What was the real interest rate that Sally earned? Sally earned a real interest rate of enter your response here percent per year. >>> Answer to 1 decimal place. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign.Downtown has been experiencing an explosive population growth of 10% per year. At the end of 2017 the population was 16,000. If the growth rate continues unabated, how many years will it take the population to triple?The consumer price index (CPI) of a country was approximately 200 at the beginning of year 2010. If inflation continued at an average rate of 2.5%, what would the index be at the beginning of year 2021?
- Please explain and provide the calculation for the real interest rate for both the situationsAbhijit deposits $100 in a bank account that pays an annual interest rate of 5 percent. A year later, Abhijit withdraws his $105. If inflation was 7 percent during the year the money was deposited, then Abhijit’s purchasing power has increased by 2 percent. Select one: True FalseSuppose Cho is a cinephile and buys only movie tickets. Cho deposits $3,000 in a bank account that pays an annual nominal interest rate of 10%. Assume this interest rate is fixed—that is, it won't change over time. At the time of her deposit, a movie ticket is priced at $15.00. Initially, the purchasing power of Cho's $3,000 deposit is 200 movie tickets. When the rate of inflation is equal to the interest rate on Cho's deposit, the purchasing power of her deposit __________over the course of the year. Select one of the following: A. Rises B. Remains the Same C. Falls
- Total Factor Productivity accounts for about 50 to 75% of historical growth per capita in industrialized country. Yes or No?Assume the nominal rate of return is 8.63% and the real rate is 4.68%. Find the inflation rate of return using the exact formula.Economic activity in developing countries is limited at least in part due to limited investment. Investment is limited mostly due to insufficient lending. Lending is mostly limited due to economic uncertainty and the prospect of unexpected inflation. In light of this, how can a lender lose during inflation if the inflation is unanticipated and the loan is a fixed-interest-rate loan?