If the inflation rate averages 3%, how much will $1000 purchase in 2 years?

Q: A financial adviser recommends a client deposit $1500 in a fund that earns 9.5% annual interest…

A: To find the interest rate per month

Q: Suppose you put a $1000 in a college fund that pays 7.2% interest compounded annually. Find the…

A: In the given problem, The principle amount is p = $1000 The rate of interest is r = 7.2% And, the…

Q: Find the nominal interest rate compounded daily that corresponds to an effective rate of 4 %- 4

A: Effective interest rate=1+rnn-1

Q: If the average inflation rate is 2%, how long is it until purchasing power is cut in half?

A: Consider the provide information,  The general formula if the inflation averages a rate of r over n…

Q: If a 3D printer increased in cost at exactly the inflation rate, what was the inflation rate if the…

A: Assume that inflation rate is r%. Since, price of printer has become twice in three years:…

Q: According to the Federal Reserve, from 1971 until 2014, the U.S. benchmark interest rate averaged…

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Q: Consider a Bond Mutual fund that gains 3% interest compounded Monthly. If you deposited $66,000 how…

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Q: What nominal rate of interest, compounded monthly, corresponds to an  effective rate of 4.5% ?

A: Thanks for the question :)And your upvote will be really appreciable ;)

Q: If the average inflation rate is 4%, how long is it until purchasing power is cut in half?

A: We know that, If the rate of inflation averages r per annum over n​ years, the amount A that​ P will…

Q: When calculating present value, the _____ the interest rate, the smaller the present value amount.

A: Answer When calculating present value, the _____ the interest rate, the smaller the present value…

Q: If the average annual inflation rate is 3.1%, how long will it take for the CPI index to double? (A…

A: Given: the average annual inflation rate is 3.1% To find: how long it will take for the CPI index to…

Q: If the simple interest on $3,000 for 7 years is $1,050, then what is the interest rate? The rate is…

A: We need to solve it by the basic formula of simple interest.First we need to specify the given…

Q: If you deposit $300 now in a savings account and increase your deposits by 10% each month, how much…

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Q: A credit card has a compound interest rate of 22.5% per year on overdue balances. How much interest…

A: According to question given thatCredit card interest rate= 22.5% per yearBalance= $485.00

Q: Assume the inflation rate is constant at 3.5% and applied at the beginning of every year. If the…

A: Consider that the inflation rate is constant at 3.5% and is applied at the beginning of every year.…

Q: A lending company advertises that for a fee of P10, you can immediately borrow up to P200 for one…

A: The formula relates present value(P), future value(F), interest rate(i) and the number of years(n)…

Q: On June 10, 2010 The Boston Globe reported that in the five years between 2006 and 2011 Boston…

A: Inflation Rate: It is the rate at which the value of a currency is falling. This means that the…

Q: With an annual inflation rate of 1.91%, how much did an item that now costs $8600 cost 8 years…

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Q: What is the interest rate compounded quarterly if 2,500,000 pesos is invested and the amount became…

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Q: At what simple interest rate will an amount of money double itself in 10 years?

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Q: If the inflation rate is 4% compounded annually, how long will it take for prices to double? years…

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Q: Suppose you want to accumulate $100,000 for a down payment on a house in 6 years. You make a single…

A: Solution is given below:

Q: What is the simple interest rate on a $2100 investment paying $771.75 interest in 10.5 years?…

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Q: In order to accumulate enough money for a down payment on a home, a couple deposit $300 per month…

A: Given, PMT = 300 r = 6% = 0.06 m = 12 t = 5 i=rm=0.0612=0.005 n = mt = 12(5)=60

Q: A $1,000,000 lottery prize pays $50,000 per year for the next 20 years. If the current rate of…

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Q: At what rate of simple interest an amount will double itself on 10 years?

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Q: What simple interest rate will convert a $200 investment into $220 in one year?

A: we know the formula: simple interest (SI)=P×r×t100 where P is the principle(investment) amount, r is…

Q: If the current CPI is 234.2 and the average annual inflation rate is 2.8%, what will be the CPI in 5…

A: The term CPI is the Current Price Index, which represents the relative change in the price of a…

Q: If the amount that $1000 will purchase is only $930 after 2 years, what was the average inflation…

A: The amount A that $P will purchase after n years if the inflation averages a rate of r over n years…

Q: Suppose that inflation is 4% per year. How long will it take for prices to double?

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Q: What nominal rate of interest convertible once every four years is equivalent to a nominal rate if…

A: What nominal rate of interest convertible once every four years is equivalent to a nominal rate if…

Q: What is the purchase price on a car that has a $264 monthly payment for 5 years, financed at 8% per…

A: The purchase of a car that has a $264 monthly payment for 5 years, financed at 8% per year,…

Q: If the amount that $1000 will purchase is only $950 after 2 years, what was the average inflation…

A: The inflation rate is the rate of change, or increase or decrease in the price of a commodity over a…

Q: if the inflation rate were 4%, how long will it take for $1 item to cost $2

A: Using this trick C2=c1(1.04)^x

Q: A 55-year-old man deposits $50,000 to fund an annuity with an insurance company. The money will be…

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Q: What is the maximum amount you can borrow with a 30-year mortgage if you can pay $725 a month and…

A: Note that, here the periodic payment PMT=$725, interest rate i=4.2%=4.212×100=0.0035, and the number…

Q: . If a $28,700 salary is increased 5 percent each year to keep ahead of inflation, what will this…

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Q: The payment of 500 php is to be made at the end of every 6 months. How much is its future value…

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Q: For an interest rate of 1% per 2 months, determine the number of times interest would be compounded…

A: Compounding period: The period between the points at which the interest is added to the account.

Q: If the inflation rate is 4.85% compounded annually, how long will it take for prices to double?

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Q: If a credit union awards interest of 8 percent per year compounded semiannually, what amount must be…

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Q: If the simple interest on $1,000 for 10 years is $600, then what is the interest rate? The rate is…

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Q: 3. What is the amount in the RRSP after 5.5 years? 4. How much interest will the RRSP have earned in…

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Q: (a) If the inflation rate is 6%, how much will a house now worth $465, 000 be worth in 10-years? (b)…

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Q: What quarterly interest rate equals an annual interest rate of 15 %? Give your answer as a decimal…

A: Given problem is :   What quarterly interest rate equals an annual interest rate of 15 %? Give…

Q: What monthly interest rate equals a quarterly interest rate of 2%? Give your answer as a decimal…

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Q: Suppose a person borrowed $2000 and repaid the lender $2150 after 10 months. What simple interest…

A: Initial amount =$2000 Final amount = $2150 Intrest Paid = $150

Q: If the annual rate of inflation is 4%, find the price of a good at the end of a year if its price at…

A: Let the price at the end of the year is x then by the formula of inflation x-2525×100=4% Because…

Q: As a new engineer, you wanted to earn and availed an investment insurance. Every month you are going…

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Q: Suppose your salary in 2012 is $70,000. If the annual inflation rate is 5%, what salary do you need…

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