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.)
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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?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?Say you own an asset that had a total return last year of 17 percent. Assume the inflation rate last year was 4.8 percent. What was your real return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
- 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?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?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)?
- 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.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)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%
- Today, the US dollar is trading at ₵4.60, compared to ₵4.20 a year ago. What is the percentage appreciation/depreciation of the dollar relative to the cedi? What is the percentage appreciation/depreciation of the cedi relative to the dollar? Please comment on your results.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?In 2007 and 1880 silver dollar sold for $14,007 what was the rate of return on investment? Answer as a decimal fraction to four decimal places.