Answered: If the price of a good is $200 in 2015…

Name: If the price of a good is $200 in 2015 and $204 in 2019, what is the i
Uploaded: 2022-11-18T00:26:58.000Z
Channel: Bartleby
Description: If the price of a good is $200 in 2015 and $204 in 2019, what is the inflation rate?A) 22%B) 20%C) 2%D) 200%

Business

Economics

If the price of a good is $200 in 2015 and $204 in 2019, what is the inflation rate? A) 22% B) 20% C) 2% D) 200%

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter17: Inflation

Section: Chapter Questions

Problem 5SQ

See similar textbooks

Related questions

Q: The purchase of a car requires a 25,000d loan to be repaid in monthly installments for four years at…

A: The actual dollar value of the 20th payment can be calculated as follows: Interest rate: 12%/12 = 1%…

Q: If the Consumer Price Index was 90 in one year and 100 in the following year, then the rate of…

A: Inflation is the general increase in price level.There are different levels of inflation.Inflation…

Q: The future amount of P100,000 for a period of 8 years is equal to P341,655.49. Considering money is…

A: Formula Used: F=P(1+i)^N Market rate=Real rate + inflation rate + market rate*inflation rate

Q: For a present sum of $750,000, what is the annual worth (in then-current dollars) in years 1 through…

A: Annual worth can be calculated as follows:

Q: A country is experiencing an inflation rate of exactly 100 percent per month for 4 months. At the…

A: Inflation is the consistent rise in general price level over period of time . And growth of…

Q: Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account.…

A: Hi! Thank you for the question but as per the guidelines, we only answer one question at a time.…

Q: A series of four annual constant-dollar payments beginning with $50,000 at the end of the first year…

A: Given Information: The amount at the beggining= $50,000 Rate of interest at the end of 1st year =…

Q: If the inflation rate is 7% per year and you want to earn a real return of 10% per year, how many…

A: PLEASE FIND THE ANSWER BELOW.

Q: If inflation is 2.7% each year from 2021 to 2031, what is the purchasing power in 2021 dollars of…

A: Given Information Inflation Rate of 2.7% increase every year from 2021 to 2031Cost $100,000 in 2031

Q: The nominal interest rate is 12%. The inflation rate is 3%. The real interest rate is equal to %.

A: The interest rate is calculated as a percentage of the principal, or the amount borrowed, which a…

Q: If the inflation rate is 6% per year, how many (future) dollars will be required 10 years from now…

A: Here, given information is: Inflation rate (r): 6% per year Present value (P): $32,500 Time period…

Q: The purchase of a car requires a $25 000 loan to be repaid in monthly instalments for four years at…

A: The actual dollar value of the 20th payment can be calculated as follows: Interest rate and the…

Q: Calculate the inflation-adjusted interest rate when the annualized inflation rate is 4.3% per year…

A: In an economy, the Inflation adjusted interest rate refers to the actual rate that is computed by…

Q: For a nominal inflation-adjusted interest rate of 24% per year compounded monthly, calculate the…

A: Given Information: Nominal interest rate per year = 24% Nominal interest rate per month = 2412 =…

Q: You just made an investment in an insurance policy that is guaranteed to pay you $2.3 million 20…

A: Given, Future return on investment= $2.3 millionNumber of years=20Market interest rate=8%Inflation…

Q: units produced 2007 2008 2009 2010 blueberries 8…

A: Given information:-…

Q: What was the approximate value of the inflation rate in Q4 of 2021?

A: Price index shows the living cost and represents the average change in general price level during…

Q: In 2019, the average salary of petroleum engineers was $98,400. Predict what their salary will be in…

Q: ry X

A: Country x is highly inflationary .

Q: Suppose Frances is an avid reader and buys only mystery novels. Frances deposits $2,000 in a bank…

A: The percentage that increases or decreases in prices during a specified period, usually a month or a…

Q: According to the College Board, the average in-state tuition and fees at public 4-year colleges and…

Q: A couple wants to save for their daughter's college expense. The daughter will enter college eight…

Q: Suppose your annual nominal income for the next four years is $78,500, and the annual inflation rate…

A: When the income of a consumer is calculated on the basis of the current year's price, then the…

Q: Suppose you have $100,000 cash today and you can invest it to become a millionaire in 15 years. What…

Q: As of July 2012, the 12 month CPI inflation rate was 1.4 percent and the 12 month core CPI inflation…

A: A). Core CPI inflation takes the price trend prevailing in energy sector & food sector where as…

Q: Goods costing $27.10 at the beginning of the year 1940 cost $176.52 at the beginning of the year…

A: Inflation is the general increase in the price level of all goods and services in the market. Some…

Q: Calculate the implied annual inflation rate from a market interest rate of 15.75% per year and a…

Q: Calculate the inflation-adjusted interest rate when the annualized inflation rate is 7.9% per year…

A: A real interest rate is adjusted to remove the effects of inflation whereas nominal interest rate…

Q: In 2000, the value of the Consumer Price Index was 171.20 and the price of gasoline (per gallon) was…

A: Given, In 2000, the CPI = 171.20 Price of gasoline = $1.56 In 2006, the CPI = 200.43 Price of…

Q: On what condition Gross Domestic Product (GDP) equals Gross National Product (GNP): Select one…

A: GDP (Gross Domestic Product) measures the value of goods and services produced within the domestic…

Q: Provided the inflation rate is f percent per year, to determine the purchasing power of $10,000 ten…

A: The buying capacity is the amount of items which a official currency may acquire. Due to increasing,…

Q: If the Consumer Price Index was 107 in one year and 104 in the following year, then the rate of…

A: Inflation is the abnormal increase in the price level of the goods and services of the economy over…

Q: calculate the percentage of inflation rate: -If the price level rises from 100 to 102 over a year…

A: Inflation rate is the rise in the general price level over a period of time. If the inflation rate…

Q: A man wishes to set aside money for his retirement at the age 65 in a fund which will have an amount…

A: Current purchase power (P) = P60,000 Inflation rate = 7.5% Period from 40h birthday to 65th birthday…

Q: Cost of a medical treatment after one year is $100,000. The real discount rate is 5%. The economy…

A: Nominal Discount rate-Real Discount rate + Inflation=5+6=11% Which gives Present value of

Q: (Year 1) (Year 2) Restaurant Visits 5 units $20 Each 50 units $35 Each N 95 Masks 250…

A: Inflation refers to the increase in general price levels in an economy from one period to another.…

Q: An analyst gathered the following information regarding the production of automobiles in an economy:…

A: Given Information: Year Price (RS) Number of automobiles manufactured 2019 45,000 10,00,000…

Q: Calculate the inflation-adjusted interest rate when the annualized inflation rate is 7% per year and…

Q: Find the cost of each item in five years, assuming a constant inflation rate of 9% E.) HD TV set,…

A: Inflation: Inflation is the gradual and consistent rise in the general price level of goods and…

Q: Price per Unit Units Produced 2007 2008 2009 2010 Blueberries 8 $2 $2 $2.1 $2.4 Pineapples 5 $2 $2.5…

A: Inflation occurs when prices rise, reducing your dollar's purchasing power. Inflation is defined as…

Q: The economy has an annual inflation rate of 3.5%. It will take approximately how many years for the…

A: Inflation rate = 3.5% Number of years

Q: An agent of a real state company stated that a house he sold in 1980 for $37000 was sold by the…

A: Given; Prices of the house in 1980= $37000 Same house was sold for $90000 in 1990…

Q: If the annual inflation rate in an economy is i, then $1 borrowed at the beginning of a year will…

A: Inflation rate refers to increase in average price level of goods and services produced in the…

Q: Workers and managers in the XYZ Company have negotiated a wage agreement under the expectation that…

A: At the beginning of the contract, the CPI is 428 and the wage rate is set at $12.00 an hour. At the…

Q: Considering 2010 as the base year, calculate inflation rate for each year (2011-2019) and fill the…

A: Given; Years CPI 2010 100 2011 111.92 2012 122.75 2013 132.19 2014 141.70 2015 145.28…

Q: A buy and sell agent buys a motorcycle for 37,000.00 in the year 1990 and it was sold for 90, 000.00…

A: We are going to use present value using the provided formula to answer this question

Q: Establish the equivalent equation to find the average inflation rate?

A: The ARI {average rate of inflation} can be described as the prices of services and goods that change…

Question

Practice Pack

OFFON

If the price of a good is $200 in 2015 and $204 in 2019, what is the inflation rate?

A) 22%

B) 20%

C) 2%

D) 200%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

Includes step-by-step video

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Learn your way

Includes step-by-step video

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

An engineer's salary was $40,000 in 2004. The same engineer's salary in 2011 is $75,000. If the company's salary policy dictates that a yearly raise in salaries reflect the cost of Jiving increase due to inflation, what is the average inflation rate for the period 2004-2012?
An electronic device cost $1250 in 2011. If inflation has averaged 2% each year, what is the price of the device in 2018?
If the Consumer Price Index rises from 140 in a year to 150 in the following year, the rate of inflation in that year is: 7.14% 10% 6.67% 1.07%
A certain country calculates inflation using a consumer price index (CPI). Between 2016 and 2017 the CPI increased from 200 to 220. What was the inflation rate between 2016 and 2017? 110% 10% 20 20%
If the Consumer Price Index rises from 125 in a year to 130 in the following year, the rate of inflation in that year is: Group of answer choices a) 4% B) 1.04% C) 3.85% D) 5%
b. The price of a product was $0.88 in the year 2008 and $1.28 in the year 2018. What is the average annual inflation rate for this product? (ANSWER CHOICES: 3.82 % or 3.68 % or 3. 98% or 3.42%) c. If the CPI for January 2008 is 208.837 and the CPI for December 2018 is 255.539, what is the average annual inflation rate (per year) from Jan 2008 to Dec 2018? (Hint: Calculate monthly inflation rate and then use annual effective interest rate) (ANSWER CHOICES: 1.75% or 1.85% or 1.95% or 1.65%)
If the Consumer Price Index was 107 in one year and 104 in the following year, then the rate of inflation was approximately
Price of wine Price of coffee 2021 $5 $5 2022 $9 $6 Assuming that wine and coffee consumption are fixed as 10 wine and 20 cups of coffee. Calculate the inflation rate between 2021 and 2022. (Note: the cost of the basket in the base year is 120) 40% 35% 22.5% 28%
Prices have risen by 65% over the last 10 years. What is the average yearly inflation rate over this time period? 5.5% 6.14% 5.14% 6.5%
Henrique is a baseball fan and attends several games per season. His expenses per season are listed in the table below: Year 1 Year 2 5 Baseball Tickets $500 $600 Jersey $100 $120 Food $150 $150 Transport $50 $80 Calculate the inflation rate for Henrique's baseball season between year 1 and 2.
The consumer price index (CPI) of a country was approximately 200 at the beginning of year 2010. If inflation continued at an average rate of 2.5%, what would the index be at the beginning of year 2021?
Assume you make $140,000 a year. The rate of inflation in the last year was 15%. What would your salary need to be in order to compensate for inflation? Question 28 options: a) $161,000 b) $169,000 c) $155,000 d) $145,000