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?
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- 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.)The value of your investment increased by 9.77% last year, and your purchasing power decreased by 1.22%. What was the approximate inflation rate?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?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)
- 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%Your aunt's $10,000 investment earned a nominal 7% last year. If the inflation rate was 3.75%, what was the real rate of return?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)?
- Over the last year, your holding period return on your investments has been 6.60%. Over the same period, inflation has been 7.60%, while your tax (on capital gains, interest, and dividends) was at a rate of 33.00%. What was your real after-tax return, using the approximate adjustment for inflation? -1.00% -0.67% -5.42% -3.18%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 pleaseIn 1975, interest rates were 7.83% and the rate of inflation was 12.42% in the United States. What was the real interest rate in 1975? How would the purchasing power of your savings have changed over the year?