if real gdp in 1995 was $4053.7 billion and nominal gdp in 1995 was $4220.3 billion, what was the value of the gdp deflator in 1
1 answer:
Answer:
GDP deflator in 1995 was 104.11
GDP deflation rate in 1995 was 4.11%
Explanation:
GDP deflator is a term referring to a measure of level prices of domestically produced final products in an economy.
We have the formula as follow:
GDP deflator = 100 x
So that, replace the formula with data, GDP deflator in 1995 can be calculated as follow:
GDP deflator = 100 x (4220.3/ 4053.7) = 104.11
=> GDP deflation rate was: 4.11%
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The number of years in which the money is in the account is 6 years.
<h3>What is simple interest?</h3>Simple interest denotes the amount of payment that is received or paid by a person in return for anything pledged or given a loan.
The interest computed on the principal amount for a specified duration of time and rate of interest is called simple interest.
The formula of simple interest:
Where, (P) stands for principal, (r) for interest rate, and (t) is for the time period.
<u>Computation </u><u>of a number of years:</u>
According to the given information,
P=$500,
r=7.5%,
t=?
SI= $225
Now, substitute the given values in the above formula, we have:
Therefore, the number of years is 6 years.
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