Yearprice of meat(per Kg)price of breadprice of gas(per Kg)(per It)housing price(monthly rent of 1bd unit)$10001$10$20$1.52$12$18$1.5$1200Suppose a consumer basket consists of 40 Kg meat, 50 Kg bread, 400 It gas, and aone bedroom apartment for one year. Using the table above, compute the inflationrate in this economy based on CPI between years 1 and 2.17%12%6%10%

The objective of the question is to calculate the inflation rate based on the Consumer Price Index…

Answered: Year price of meat (per Kg) price of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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First month's shopping cart total is 565.54$ (base month) Second month's shopping cart total is 568.19$ Calculate the inflation rate SHOWING THE CALCULUS YOU MADE please write it clearly, preferably not on paper
QUESTION-2 Someone calculated the-future worth of his investment in term of today's dollars. The obtained result was $/945.89s, The life of the investment is expected to be 20 years. The average annual inflation rate along this period is 7%. If it is known that the investor earns 149% per year from this investment, what is the first cost of the investment?
For the next four years, a family anticipates buying $1.000 worth of groceries each year. If inflation is expected to be 3%/year, what are the constant-worth cash flow and the then- current cash flow required to purchase the groceries? Constant-worth (C.) $1,000 $1.000 $1,000 $1,000 Then-current (T.) $1.000 x 1.03= $1,030 $1.030 x 1.03 $1,060.90 $1,060.90 x 1.03 = $1,092.73 $1,092.73 x 1.03 = $1,125.51 Year (k) %3D %3D %3D The then-current equivalent cash flow will be T = T,(1+)* for k 1,..,n Since C = Ta. so T = C(1+)* for k = 1,.,n Using the cash flows of Example 1, determine the present worth of the grocery purchase using a. constant-worth analysis (in other words, using the constant-worth cash flow) b. then-current analysis (in other words, using the then-curent cash flow) The inflation rate is 3% per year and the real time value of money is 15%.
An economist has predicted that during the next 12 years, prices in the U.S. will increase 55%. He expects a further increase of 25% in the subsequent 8 years. Compute the annual inflation rate, f, for the entire 20-year period.
points Suppose that you invested 88,207AED What is the cquivalent monthly payment you must get in constant dollars? in a small engineering project at 139% (market interest rate). If the general inflation rate is expected to be oi compounded monthly.
Your manager has decided to invest $4350 dollars at an annual interest rate of 8.0% to buy raw material that it is needed one of the main manufacturing processes of your company. The current price of the raw material is $4.0 per kilogram. If the annual inflation is 5.0%, how many kilograms of raw material will your manager be able to purchase in 8 years? $ What would be the actual dollars amount that will be paid in 8 years for that raw material? 2$
a certain commodity has a present value of 15000, find the future amount of the commodity after 3 years if the economic experiencing an inflation rate of 10% annually
John borrowed $7,000 from a commercial bank for 6 years to pay his tuition fee. Calculate the interest owed on this loan after 6 years in real dollars if the bank charges 7% annual (current) interest rate and annual inflation is 3%.
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 5 years. If the expected inflation rate as applied to the priceof this house is 7% per year, what is its expected price after four years?
A father wants to save in advance for his 8-year old daughter’s college expenses.The daughter will enter the college 10 years from now. An annual amount of$20,000 in today’s dollars (constant dollars) will be required to support the college for 4 years. Assume that these college payments will be made at the beginning of each school year. (The first payment occurs at the end of 10 years). Thefuture general inflation rate is estimated to be 5% per year, and the interest rateon the savings account will be 8% compounded quarterly (market interest rate)during this period. If the father has decided to save only $1,000 (actual dollars) atthe end of each quarter until she goes to college (the last deposit occurs at the endof 10 years) how much will the daughter have to borrow to cover her sophomoreexpenses?(a) $4,120 (b) $4,314(c) $4,000 (d) $4,090
calculate Net Present value and Annual worth using the cash flow diagram below. inflation corrected interest rate is 5.08% Note:- please dont use pen paper
Jenna plans to donate annually to her favorite charity. She wants her annual donation to have the equivalent buying power of $750 in present/today's dollars. The annual inflation is 3%. How much should donations be for the first 5 years? She gets a check for $2,250, and places it into a fund that earns interest of 18% annually. How many years can her $2,250 check pay for including the 18% annual growth?

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