Do you get the same cost using an average inflation rate

Assignment Help Microeconomics

Reference no: EM13183354

The inflation rate over a 10 year period for an item that now costs $1000 is shown below Year 1, 10% Year 2, 0% Year 3, 10% Year 4, 0% Year 5, 10% Year 6, 0% Year 7, 10% Year 8, 0% Year 9, 10% Year 10, 0% What will be the cost at the end of year 10? Do you get the same cost using an average inflation rate of 5% per year through the 10 year period? Why?

Reference no: EM13183354

Questions Cloud

Difference between projected and actual bci inflation rate : In 1999, the Office of the Under Secretary of Defense projected that the ENR Building Cost Index (BCI) would increase from its 1999 value of 3423 to 4098 in 2012. If the actual value in 2012 was 5167, what was the difference betwee..

Discuss the objectives and functions : Briefly discuss the objectives and functions of each of these sources and purpose of each source of regulation.

State ammonia nh3 to prepare a buffer solution : How many grams of dry NH4Cl needed to be added to 1.50L of a 2.00M solution of ammonia NH3 to prepare a buffer solution that has a pH of 8.60?

State a sealed container holding : A sealed container holding 0.0255L of an ideal gas at 0.983 atm and 71C is placed into a refrigerator and cooled to 37C with no change in volume

Do you get the same cost using an average inflation rate : The inflation rate over a 10 year period for an item that now costs $1000 is shown below Year 1, 10% Year 2, 0% Year 3, 10% Year 4, 0% Year 5, 10% Year 6, 0% Year 7, 10% Year 8, 0% Year 9, 10% Year 10, 0% What will be the cost at the end of year 1..

Explain hcl is added to the buffer from part a : What is the pH after 0.150mol of HCL is added to the buffer from part A? Assume no volume change on the addition of the acid.

What is the largest value that herfindahl index could take : Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car deal..

Explain hybridization and geometric shape and bond angles : Indicate for each carbon in the following molecules the hybridization, geometric shape, and bond angles: a) CH3CH3

How choice of depreciation method affects reported profits : Demand and rental revenues for vans are relevantly consistent through the vehicle life, regardless of condition or appearance. The vans are disposed of only when they are completely worn out. The vans are generally completely worn out once they ha..

User Account

All Pages