Using you answer for Question 2, what will be the price per MMBtu of natural gas on June 30, 2022 if this average inflation rate continues for the next 60 days (a total of 180 days from December 31, 2021)? The nearest answer is: a. $8 b. $9 c. $10 d. $11 e. $12
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- Rosalie the Retiree knows that when she retires in 16 years, her company will give her a one-time payment of 20,000. However, if the inflation rate is 6 per year, how much buying power will that 20,000 have when measured in todays dollars? Hint: Start by calculating the rise in the price level over the 16 years.The index number representing the price level changes from 110 to 115 in one year and then from 115 to 120 the next year. Since the index number increases by five each year, is five inflation rate each year? Is the inflation rate the same each year? Explain your answer.The total price of purchasing a basket of goods in the United Kingdom over four years is: year 1=940, year 2=970, year 3=1000, and year 4=1070. Calculate two price indices, one using year 1 as the base year (set equal to 100) and the other using year 4 as the base year (set equal to 100). Then, calculate the inflation rate based on the first price index. If you had used the other price index, would you get a different inflation rate? If you are unsure, do the calculation and find out.
- QUESTION 10 If prices grow by 2.9% every year, over 9 years, what is the total 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%).2. The price of natural gas has been zooming up from $4 per MMBtu on December 31, 2021 to $8 on April 30, 2022. What was the average effective rate of inflation per day over those 120 days? Hint: Your answer when compounded by 120 days should double the price. The nearest answer is: a. 0.5% b. 0.6% c. 0.7% d. 0.8% e. 0.9%7. Using you answer for Question 2, what will be the price per MMBtu of natural gas on June 30,2022 if this average inflation rate continues for the next 60 days (a total of 180 days from December 31,2021)? The nearest answer is:a. $8 b. $9 c. $10 d. $11 e. $12 Answer for 2 was 0.5%
- 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?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%)Costs due to an annual inflation rate of 4 percent can be determined by repeatedly multiplying the cost of an item by 1.04. For example, if the cost of a $50 item increases 4 percent, the new cost is 1.04 x 50 = 52. Use this rate of inflation to determine the following amounts to the nearest hundredth. Round your answer to the nearest cent. Part 1 out of 4 a. How much will the cost of a $545 washing machine increase by in 1 year due to inflation? dollars
- Question 14 Refer to the information provided in Table 22.6 below to answer the question(s) that follow. Table 22.6 Price per Unit in 2014 Units Purchased 5. 2015 2016 $1.00 $2.00 $4.00 $1.50 $2.50 $1.50 $3.00 Good A Good B 10 Good C $4.50 $5.00 Refer to Table 22.6. If 2014 is the base year, the inflation rate between 2014 and 2016 is 40.2%. 28.7%. 25.1%. 17.4%.Suppose you borrow $1,000 of principal that must be repaid t the end of two years, along with interest of 5 percent a year. If the annual inflation rate turns out to be 10 percent, Hint: Future value = Present value x (1 + Growth in prices), where t is the number of years evaluated. Real value of loan repayment Amount of loan x (1 + Real interest rate) Instructions: Round your responses to the nearest whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. What is the real rate of interest on the loan? % b. What is the real value of the principal repayment? c. Who loses, the debtor or the creditor? Debtor O CreditorSuppose the basket of goods used for a Canadian university student price index consists of 2 terms of full-time study and 4 textbooks. Prices of the goods by year are as follows: Year Full-time tuition for Price of One one term Textbook 2018 $3,605 $115 2019 $3,631 $139 2020 $3,924 $189 a) Using 2018 as the base year, compute the university student price index for 2018, 2019 and 2020, and the inflation rate between 2018 and 2019, and between 2019 and 2020. b) Suppose that all university textbooks were produced in the United States. Would Canada's GDP Deflator increase more, less or the same rate as the student price index (based only on these two goods)?