User Account

All Pages

Calculate the real value of bill income

Assignment Help Business Management
Reference no: EM132160279

Chart

year 2010

Bills nominal income $100,000

CPI 200

year 2011

Bills nominal income $102,000

CPI 210

year 2012

Bills nominal income $104,000

CPI 230

a) Using the base year as the comparison year, calculate the Real Value of Bill's Income for 2010 measured in base year dollars. Please show the work done to get your answer. Please calculate your answer to the nearest dollar.

b) Using the base year as the comparison year, calculate the Real Value of Bill's Income for 2011 measured in base year dollars. Please show the work done to get your answer. Please calculate your answer to the nearest dollar.

c) Using the base year as the comparison year, calculate the Real Value of Bill's Income for 2012 measured in base year dollars. Please show the work done to get your answer. Please calculate your answer to the nearest dollar.

d) In what year was Bill's Real Income the highest?

e) Using the information above calculate the inflation rate from 2011 to 2012. Please show the work done to get your answer. Please calculate your answer to the second decimal place (hundredths place).

f) In one factual sentence please state what information your answer in (e) above tells us. (I did not want any opinion of whether you think your answer is high or low.)

In other words, the inflation rate you calculated in (e) above tells us what information? 

g) If Sue lent Bill $20,000 at the start of 2001 for 1 year and charged Bill a nominal interest rate of 5.00%, then please calculate the real interest rate that Sue earned for this 1 year loan. Please show how you got your answer. Please calculate your answer to the second decimal place (hundredths place)

h) If Sue wanted to earn a real interest rate (return) of 5.00% for the loan mentioned above, then what nominal interest rate should she have charged Bill? Please show how you got your answer. Please calculate your answer to the second decimal place (hundredths place).

Reference no: EM132160279

Questions Cloud

Explain the concept of clutter in detail : The amount of information can sometimes hamper the outcome expected by the end user. In other words, clutter can hinder the intended message.
Expectations about future short term interest rates : "Monetary policy can only have a significant impact on incentives to invest in long term assets if it affects expectations about future short term interest rate
What important skills needed for a good penetration tester : Need to review given article with 2 APA references. What are the most important skills and methods needed for a good penetration tester
Growth rule implies a nominal interest rate : "Equilibrium in the money market under a constant money growth rule implies a nominal interest rate that is equal to the trend value of the real interest rate".
Calculate the real value of bill income : Using the base year as the comparison year, calculate the Real Value of Bill's Income for 2010 measured in base year dollars.
What is one health behavior change you need : What is one health behavior change you need to make and what hurdles are stopping you? How can this individual technique of behavior change be applied.
Discuss strategic analysis decisions in the next five years : Discuss strategic analysis decisions in the next five years, what we need to watch out for in the information technology (IT) field,
Employ attribution theory in diverse : In what ways might managers employ attribution theory in a diverse, multicultural setting?
Review of the article - discuss the pen-testing skills : Review of the given article. In order to discuss the pen-testing skills of an individual, the fact that this is such very broad spectrum needs to be highlighted

Reviews

Write a Review

Business Management Questions & Answers

  The politics of medicare and medicaid

One of the significant challenges for Medicare and Medicaid is not necessarily the implementation of the program but the influence of the political climate.

  Meter shuttle run test and reached a maximum

She did the 20-Meter Shuttle Run Test and reached a maximum speed of 7.5 km/h. Estimate her VO2max in units of mL/kg/min.

  Explain how does diversity affect a group performance

Explain how does diversity affect a group's performance? Illustrate what is the possible short- and long-term effectiveness of diverse groups?

  Historical cost and net book value of plant asset

The difference between the historical cost and the net book value of a plant asset is the?

  Effective change management program

Describe the key elements of an effective change management program. Use at least three unique references. Length: 5-6 paragraphs.

  A min-max model

If you were making a recommendation to your team about a shortest path model on a well-established process, how would you frame the problem for including in a min-max model? Cite an example.

  What should business owners know about their competition

What should business owners know about their competition and how can they stay informed?

  Probing questions in an interview

Probing questions in an interview - List 10 guidelines you would follow in playing the proper role of a JAD session leader.

  Compute the? bond yield to maturity

The 17?-year, ?$1,000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is ?$1,105?, and the? market

  Explain how important is product quality

Explain How important is product quality when a limited edition soft drink like Ice Cucumber sells out in a matter of weeks and What criteria would you suggest that Pepsi and Suntory use when screening ideas for new limited-edition soft drinks?

  What you have learned about the biblical foundation

Think about Greenleaf's principles of servant leadership and what you have learned about the biblical foundation of servant leadership. Identify specific principles of servant leadership that.

  Re-engineering an organization into cross-functional teams

Expalin the resistance to change at the organization and individual levels that you will likely encounter

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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