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SOVA2 [1]
3 years ago
8

The residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2016, they spend a total of $250 fo

r 100 heads of cauliflower, $100 for 50 bunches of broccoli, and $250 for 500 carrots. In 2017, they spend a total of $210 for 60 heads of cauliflower, $180 for 90 bunches of broccoli, and $270 for 450 carrots.Year Cauliflower Broccoli Carrots
2016 2.1 1.4 0.1
2017 2.5 1.4 0.3 Using 2016 as the base year, the CPI for 2016 is______, and the CPI for 2017 is______. The inflation rate in 2017 is_____using the CPI.
Business
1 answer:
Reil [10]3 years ago
6 0

Answer:

CPI for 2016 = 100

CPI for 2017 = 110

Inflation rate in 2017 = 10%

Explanation:

Before finding Consumer Price Index (CPI), we have to calculate the market basket cost price for each year

2016 market basket cost price =

Cauliflower = $250

Broccoli      = $100

<u>Carrots       = $250</u>

Total cost = $600

2017 market basket cost price =

Cauliflower = $210

Broccoli      = $180

<u>Carrots       = $270</u>

Total cost = $660

We know, CPI = (Cost of market basket in a given year ÷ Cost of market basket in a base year) × 100

As 2016 is the base year, CPI for 2016 = ($600 ÷ $600) × 100 = 100

CPI for 2017 = ($660 ÷ $600) × 100 = 100 = 110

Again, we know, Inflation rate using the CPI = [(CPI for current year - CPI for previous year) ÷ CPI for previous year] × 100

Therefore, Inflation rate using the CPI = [(110 - 100) ÷ 100] × 100 = 10%.

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5 0
2 years ago
Melissa invests $37,000 today in a savings account that pays 4 percent interest compounded annually. She wants to know the total
MissTica

Answer:

a. N = 7, I/Y = 4, PV = -37,000

Explanation:

In financial calculator % is already written in the calculator so we have to write only number in calculator.

Option b incorrect because it has included a number with % ( 4% ) sign that we dint do usually in calculator.

Option c is incorrect because it has taken pv as positive

Option d is incorrect because it has written 4% that we don't put in calculator as well as it has inserted positive pv which is also wrong.

7 0
3 years ago
The amount of money remaining after deductions are taken out best describes which term?
telo118 [61]
The answer to this question is the term net income. A net income is the remaining money after deductions or expenses have been taken from the gross income. Net income is also known as net profit. Net income also states and calculates the total revenue that exceeds after all operational expenses and taxes been deducted.
4 0
3 years ago
9. Efficient markets hypothesis Which of the following are consistent with the efficient markets hypothesis? Check all that appl
atroni [7]

Answer:

The answer is: Stock markets reflect all available information about the value of stocks

Explanation:

Efficient market hypothesis (EMH) is an investment theory about stock markets where the price of stocks is always the fair market value of the stocks. It argues that it is impossible for someone to determine when stocks are either undervalued or overvalued. So all the technical and fundamental analysis techniques are useless.

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3 years ago
What might be a consideration in deciding where to buy something?
ch4aika [34]
All of the above sounds about right
7 0
3 years ago
Read 2 more answers
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