User Account

All Pages

Calculate the real value of bill income

Assignment Help Business Economics
Reference no: EM132162825

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: EM132162825

Questions Cloud

Research the styles and strategies in action : Find 5 products or processes that are known for Disruptive Innovation. Research the Styles and Strategies in action.
Risk premium on interbank lending : In the aggregate demand model with a risk premium on interbank lending, an increase in the risk premium causes the AD curve
Significant impact on incentives to invest in long term : "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
Trend value of the real 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. Please show the work done
Calculate total payments received during a time period : Establish or identify prices of goods, services or admission, and tabulate bills using calculators, cash registers, or optical price scanners.
Should fortis go ahead with the dam or not : Identify and describe the stakeholders related to the Chalillo dam project and assess their influence.
Give one important reason why india did not experience : Give one important reason why India did not experience large capital outflow during the Asian financial crisis in 1997 and briefly explain why that factor was
Determine the number of planes that the company must produce : Given the following forecasted data, determine the number of planes that the company must produce in order to break even

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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