If inflation has been running at 2.2% per year and a washing machine costs $460 today, what would it hace cost three years ago? What is the interest rate per period? i=
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If inflation has been running at 2.2% per year and a washing machine costs $460 today, what would it hace cost three years ago? What is the interest rate per period?
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- Ten years ago, an item cost $2,500. The rate of inflation for the first 4 years was 4%, during the next 3 years, 6%; and for the last 3 years, 9%. Assuming that increases in price were due to inflation alone, what would the item cost now?write on paper 1- The current gasoline price is $4.50 per gallon, and it is projected to increase by 5% the next year, 7% the following year, and 8% the third year. What is the average inflation rate for the projected gasoline price for the next three years?An economist has predicted that for the next 5 years, the U.S. will have a 2.5% annual inflation rate, followed by 5 years at a 3.5% inflation rate. This is equivalent to what average price change per year for the entire 10-year period?
- Tuition at xyz this year cost $61,170. If the inflation rate is 2% for the foreseeable future anfd if the cost of attending XYZ rises at the rate of inflation, what will it cost in 20 years to attend XYZ for 1 year? For 4 years (2038-2042)?Forty years ago, a gallon of gas cost $1.20. Today, a gallon of gas costs 2.60. Suppose that the gas price increase has been entirely due to inflation. a. Calculate the annual inflation rate. b. Today, you plan to make a cash purchase for a new car. The Model K costs $24,000 and you estimate the car will last 10 years and require 600 gallons per year. The Model M costs $28,000 but gets better mileage, so it will only require 400 gallons per year. The cars are identical in all other respects, and they will both be worthless after 10 years. Assume that gas prices will rise by the rate of inflation (that you calculated in part a. Further assume that all gas expenditures are incurred at the end of the year. If the nominal interest rate is 9% per year, which car should you purchase? Show all calculations and explain carefully.The CPI has risen from 130 to 115, what is the inflation rate? 10% 20% 15% 13%
- Somebody has bought US Dollar with one-third of his money and Euro with one-third. The remained one-third is remained as TL. Dollar has gained value over national currency by D % each month and Euro E % each month. The average monthly inflation rate is Y. Find the percentage loss/gain of him/her at the end of a year D E Y 2,8 5,2 1,7John bought his car 3 years ago worth 230,000, his friend Joshua bought the same model this year costing 320,000. Compute for the inflation rate. Rate: % (2 decimal places)Inflation is a general increase in prices and may be measured by the Consumer Price Index (CPI). Use Appendix A to answer the questions. In Year 1 the CPI was 100; 25 years later, it was 225. What was the annual rate of inflation? Round your answer to the nearest whole number. % Nancy and Pam both currently earn $110,000. If the annual rate of inflation is 4 percent, how much must each earn after eleven years to maintain their purchasing power? Round your answer to the nearest dollar.$ Your parents bought a home for $50,000 in Year 1 and sold it in Year 31 for $280,000. What was the annual rate of price increase over the 30 years? Round your answer to the nearest whole number. %
- An economist has predicted 2% inflation during the next 10 years. How much will an item that presently sells for $100 cost in 10 years?You would like to buy a house that is currently on themarket at $85,000, but you cannot afford it right now. However, you think that youwould be able to buy it after 4 years. If the expected inflation rate as applied to the priceof this house is 6% per year, what is its expected price after four years?You accepted a new job 5 years ago and since that time, your performance has been stellar. You started at $60,000 and have received the same % raise each year of these last 5 years: your salary is now $72,999.17. If inflation was steady at 4.5%, are you doing better now than when you started?