Engineering Economy Plus Mylab Engineering With Pe Format: Cloth Bound With Access Card
Engineering Economy Plus Mylab Engineering With Pe Format: Cloth Bound With Access Card
17th Edition
ISBN: 9780134873206
Author: Sullivan, William G.^wicks, Elin M.^koelling, C. P
Publisher: Prentice Hall
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Chapter 8, Problem 22P

(a):

To determine

Calculate the present value.

(b):

To determine

Calculate the new present value.

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In​ 1923, a certain country underwent one of the worst periods in history of​ hyperinflation, which is extraordinarily large inflation in prices. At the peak of the​ hyperinflation, prices rose 34,000​% per month. At this​ rate, by what percentage would prices have risen in 1​ year? In 1​ day? (Assume 30 days per​ month.) The annual inflation rate is ×10​%. ​(Type whole​ numbers.)   The daily inflation rate is nothing​%. ​(Round to the nearest whole number as​ needed.)
Inflation has been a reality for the general economy of the U.S. in many years. Given this assumption, calculate the number of years it will take for the purchasing power of today’s dollars to equal onethird of their present value. Assume that inflation will average 2.5% per year.
QUESTION 9 If total inflation over 18 years is 17.3%, what is the annual inflation rate? Write the answer in percent terms with up to two decimals (e.g., 10.22 for 10.22%, or 2.33 for 2.33%).
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