Calculate the average monthly inflation rate

Assignment Help Microeconomics
Reference no: EM132171221

Question - The average cost of a certain model car was $18,000 ten years ago. This year the average cost is $30,000.

(a) Calculate the average monthly inflation rate (fm) for this model.

(b) Given the monthly rate fm, what is the effective annual rate, f, of inflation for this model?

(c) Estimate what these will sell for 10 years from now, expressed in today's dollars.

Reference no: EM132171221

Questions Cloud

Aristotle asserted that management is universal concept : Aristotle asserted that "management is a universal concept". Sports organizations unlike other organizations possess 6 defining elements.
Critical thinking concepts and tools by paul and elder : Critical thinking concepts and tools by paul and elder
Connection between performance appraisal and compensation : Why was the performance appraisal first established? What is the connection between the Performance Appraisal and Compensation?
Production planning strategy perspective : The Supply Planning Team has many general options to select from a Production Planning strategy perspective.
Calculate the average monthly inflation rate : The average cost of a certain model car was $18,000 ten years ago. This year the average cost is $30,000. Calculate the average monthly inflation rate
What lump sum should he deposit on the child birthday : The estimated inflation rate is 8%. If the bank pays 5% compounded annually, what lump sum should he deposit on the child's 4th birthday
Analyze the two situations and conflict styles : Analyze the following two situations and conflict styles and explain why it is appropriate or inappropriate based on the situation.
Types across the ehr system are considered : Which data elements of the patient record are considered protected health information (PHI) and which record types across the EHR system are considered PHI?
Strategies for human resource information system : What are the requirements and implementation strategies for a human resource information system (HRIS)?

Reviews

Write a Review

Microeconomics Questions & Answers

  Why does government oppose the given situation

Identify a solution that the business community appears to favor for the current annual budget deficit in the US. For example, in the area of health care.

  And explain how ems will further benefit your organization

Explain how an EMS will assist your organization comply with environmental laws. Explain how an EMS will assist your organization reduce liability exposures and explain how the EMS will further benefit your organization.

  Why are ups and fedex opposed to the usps rate cuts

The USPS is aggressively slashing prices for its biggest e-commerce companies in time for the holidays. The Wall Street Journal reports that the steepest price cuts will directly benefit consumers. In your opinion, is it true or false, and why?

  Estimate the annual active use value of the area

Imagine that you are trying to value a particular piece of wilderness that people use for recreational hiking and cycling. While this area has no entrance fee, statistics have been kept on who visits and how frequently they visit the area.

  Explain the theory of liquidity preference

Explain the theory of liquidity preference. How does it help explain the downward slope of the aggregate-demand curve?

  Find what is the monthly payment

For an $85,000 mortgage with a 30-year term and a 12% nominal interest rate, what is the monthly payment? After the first year of payments.

  What is the probability that more than 10 parts

What is the probability that more than 10 parts will be defective? Answer to at least four decimal places.

  1 caty consumes only goods x and y her utility function is

1. caty consumes only goods x and y . her utility function is ux y minx y. we are given that px 3 py 6 and catys

  What was jeans nominal rate of return on this investment

Suppose that Jean Splicer, an investor, buys $300,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $315,000.

  Derive the cost function for the production function

Show that this production function exhibits constant returns to scale if a+b=1, increasing returns if a+b>1 and decreasing returns if a+b

  What would be some advantages of introducing an economy

Read the case: "In a Bind: Peak Sealing Technologies' Product Line Extension Dilemma". What would be some advantages of introducing an economy grade tape for Peak Sealing Technologies (PST)?

  Calculate the vmp of individual workers

One of his issues is that it is impossible to calculate the VMP of individual workers. Explain that argument, both logically and using the evidence Adler provides

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd