Answer:Consumer Price Index (CPI) 2016 = 111.54
Explanation:
consumer price index is a measure of price change over a period of time in other words consumer price index is a measure of inflation. A number of good are selected and their prices are monitored each year in order to measured against the base year prices in order to determine changes in the general price level.
The goods selected represent the spending patterns of the an average consumer in that economy or country. When the price of these goods rise over time when compared to the Basket Cost of the base year we can assume that there is a rise in the general price level
Base year = 2014
Basket's cost 2014= $52
Base cost 2016 = $58
Consumer Price index (CPI) 2016 = Basket costs 2016/base year Basket cost 2014.
Consumer Price index (CPI) 2016 = 58/52 = 1.115384615 x 100
Consumer Price Index (CPI) 2016 = 111.5384615
Consumer Price Index (CPI) 2016 = 111.54
It’s c
Hope this helpeddddddd
Answer:
The correct answer is $357,142.86.
Explanation:
According to the scenario, the given data are as follows:
Initial payment = $20,000
Growth rate = 3.4%
Discount rate = 9%
So, we can calculate the present value, by using following formula:
Present Value = Initial payment ÷ ( Discount rate - Growth rate)
By putting the value, we get
= $20,000 ÷ (0.09-0.034)
= 357,142.86
Hence, The present value of this Growing perpetuity is $357,142.86
