The inflation rate is expected to be 8% per year into the foreseeable future. How many years will it take for the peso's purchasing power to be one-half off what it is now? Using this formula F=P(1+f)^n.
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The inflation rate is expected to be 8% per year into the foreseeable future. How many years will it take for the peso's
Using this formula F=P(1+f)^n.
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- The inflation rate is expected to be 4.5% per year into the foreseeable future. How many years will it take for the peso’s purchasing power to be 80% of what it is now?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.Because of general price inflation in our economy, the purchasing power of the dollar shrinks with the passage of time. If the average general inflation rate is expected to be 8% per year for the foreseeable future, how many years will it take for the dollar's purchasing power to be one-third of what it is now?
- Over the last 10 years, the average rate of inflation has been 1.61%. what is the purchasing power of a dollar today in terms of what a dollar could purchase in 2008?A man deposited his first paycheck of $2000 into a long-term savings account at a bank at an interest rate of 12% in 1951 as a gift to his future grandchild. Assume a steady inflation rate of 8%. If his grandchild withdraws that money today in 2021, how much actual money did they withdraw? How much purchasing power would this withdrawal have in 1951?Over the next year, the inflation rate will be 6%, while the nominal interest rate is 2% per year. What is the real value of $1,000 received one year from now? (That is, what amount of money now gives you the same purchasing power as $1000 in one year.) Round to two decimal places and do not enter the $ sign. If your answer is $1.333, enter 1.33. If your answer is $1.666, enter 1.67. If appropriate, remember to enter the - sign.
- Hyperinflation has struck your country! Over the past year the price of a loaf of bread has increased from $2 to $52,858. What is the annual rate of inflation suggested by this increase? Put your answer in percentage form (e.g. 30.57 not 0.3057) and then round to two decimal places.Find the time it would take for the general level of prices in the economy to double at an average annual inflation rate of 3.1%. What is the appropriate value of i? i= (Type an integer or a decimal.)Suppose the spot and three-month forward rates for the yen are ¥79.45 and ¥78.84, respectively. What would you estimate is the difference between the annual inflation rates of the United States and Japan?
- The average inflation rate is calculated on the basis of the CPI for all the items in the market basket. True or false?The Consumer Price Index (CPI) of one particular country can be modeled by I(t) =-0.043f3 +0.99t² +1.00t+564 (0 < t < 10) where t is time in months since the start of January 2015. What was the inflation rate in July 2015 (t 6)? Round your percent to 2 decimal places.The inflation rate between the years 2000 and 2001 was 2.45%. Based on this information, a basket of goods that cost $161 in the year 2000 would now cost how much in the year 2001? Enter a number rounded to two decimal places.