Answer:
A. rose 60% from the cost of the market basket in the base year.
Explanation:
The base year of 1982-1984 represents a 100 value for the index, and anything above it, is an over 100 value.
A 60% rise in 12 years (1984 to 1996) represents an average inflation rate of 5% every year, a bit high, but still within a moderate range.
The formula to find the adjusted consumer price index is:
Adjusted CPI = (CPIn / CPIb) - 1
Where:
CPIn = consumer price index in selected year (in this case 1996)
CPIb = consumer price index in base year (in this case 1982-1984)
Answer:
B. a financial intermediary because they take premiums and use them to purchase financial securities
Explanation:
Answer:
360
Explanation:
Given:
Face Value of the bond = $4500
The fixed rate of interest is r = 8%
If f Sarah were not to cash in the bond tomorrow, it means she have the value of $4500 after 3 years. But tomorrow she were to cash, so the interest she lose is:
I = FV*r = 4500*8% = 360