EBK CONTEMPORARY ENGINEERING ECONOMICS
EBK CONTEMPORARY ENGINEERING ECONOMICS
6th Edition
ISBN: 8220101336736
Author: Park
Publisher: PEARSON
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Chapter 11, Problem 4P
To determine

Calculate the inflation rate.

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The future amount of P100,000 for a period of 8 years is equal to P341,655.49. Considering money is worth 10% per year with an inflation rate of "x " per cent per year, find the value of inflation rate.
Prices are increasing at an annual rate of 6% the first year and 10% the second year. Determine the average inflation rate (f) over these two years.
Provided the inflation rate is f percent per year, to determine the purchasing power of $10,000 ten years from now, the $10,000 must be:a. divided by (1 + f )10b. multiplied by (1 + f )10c. divided by (1+ 0.10) fd. divided by (1 + f )
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