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? 3.82% 3.68 % 3.42% 3.98 %
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Since you have asked multiple questions, we will solve the first question for you. If you want any specific question to be solved, then please specify the question number or post only that question.
Inflation rate:
The inflation rate determines the average growth rate of the overall price level of an economy. It is measured by the percentage change in the price level over the years.
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- You just made an investment in an insurance policy that is guaranteed to pay you $2.6 million 20 years from now provided you live that long.What will be the purchasing power of that amount with respect to today's dollars if the market interest rate is 8% per year and the inflation rate stays at 3.7% per year over the 20-year period?The purchasing power of this amount is. Please answer correct calculation asap plz Don't answer by pen paper plzSome of the following future cash flows have been expressed in then- current (future) dollars and others in CV dollars. Use an interest rate of 12% per year and an inflation rate of 5% per year. Find the present worth with all cash flows expressed in future dollars. Year Cash flow, $ 0 3 4 7 16,300 36,500 10,700 26,300 Expressed as CV Then-current Then-current CV The present worth with all cash flows expressed in future dollars is $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%)
- The accompanying table shows a utility company's cost to supply a fixedamount of power to a new housing development; the indices are specific to the utility industry. Assume that year 0 is the base period. Determine the specific inflation for each period and calculate the average inflation rate over the three year period. Year cost 0 $624.000 1 $638.400 2 $677,000 3 $729,500Some of the following future cash flows have been expressed in then-current (future) dollars and others in CV dollars. Use an interest rate of 10% per year and an inflation rate of 3% per year. Find the present worth with all cash flows expressed in future dollars. Expressed as CV Then-current Then-current CV Year Cash flow, $ 17,500 45,500 13,500 27,500 4 7 The present worth with all cash flows expressed in future dollars is $X₁ 4) If the effective annual interest rate is 9% per year and inflation is 3.8% per year what is the true annual interest rate? annual interest rate = effm = (1 + 0.091) nomiral= 0.7207 12 = 8.6484- anal interest rate= 13,8\8,6484 = 12.4481, nomiral tinflation = 0.007 207 ~ 0,7207 1 monthly
- Time Price per Unit Units Produced 2007 2008 2009 2010 Blueberries 8. S2 S2. $2.1 $2.4 Pineapples S2 $2.5 $2.5 $3 Cheese S2.5 S3 $41 $3.5 If 2009 is the base year, the inflation rate between 2009 and 2010 is Select one: Oa. 16.1%% Ob 11.2% C-5.8% d. 4.9% here to searchThe accompanying table shows a utility company's cost to supply a fixedamount of power to a new housing development; the indices are specific to the utility industry. Assume that year 0 is the base period. Determine the specific inflation for each period and calculate the average inflation rate over the threeyear period. Year Cost 0 $624,0001 $638,4002 $677,0003 $729,50010.19 The makers of Lifestraw, a filter designed to allow the user to drink water safely from a stream, have a financial decision to make. Implementing an au- tomated assembly process will cost $5000 per year for the next 6 years. The interest rate is 15% per year and the inflation rate is 5% per year. (a) What is the amount they can spend now in lieu of these future costs? Solve using factors and a spread- sheet. (b) If only $12,000 is available now, what is the maximum equivalent amount that can be spent for each of the 6 years? How does this compare with the $5000 estimate?
- Price per Unit in Units Purchased 2008 2009 2010 Good A 5 $1.00 $41.50 $1.50 Good B 10 $2.00 $2.50 $3.00 Good C 4 $4.00 %24.50 $5.00 If 2009 is the base year, the inflation rate between 2009 and 2010 is Select one: Oa.9.4% b.-13.9% 12.2% Dd.7.0%MEEN1C | CLO 1 Prices of gasoline in the United States are forecast to increase by 7% in 2030. If the current average prices of gasoline in the United States stand at $3 per gallon, in 2020, What would be the average annual inflation rate over the forecast period. O The average annual rate of increase in the price of gasoline is 10% O The average annual rate of increase in the price of gasoline is 0.68% O The average annual rate of increase in the price of gasoline is 96.00% O The average annual rate of increase in the price of gasoline is 1.10%Assume a constant inflation rate of 5% annually and 0% interest rate. Over a whole period of 14 years. A real estate investment after 4 years would consume 307,500$. Lasting to 10 years the income is a constant of 170,000$ each year. A) What would be the equivalence selling price for the real estate in year 0?