Answer:
Initially the purchasing power of her $3000 deposit is 300 (3000/10) baseball caps.
Annual Inflation rate 0 %
Price of base ball cap $10
3000*1.05=3150
Purchasing power= 3150/10= 315 caps at 0 percent inflation
Annual Inflation rate 5 %
Price of baseball cap = 10*1.05= 10.5
Purchasing power = 3150/10.5
=300 caps at 5 percent inflation
Annual Inflation rate 8%
Price of baseball cap =10*1.08= 10.8
Purchasing power =3150/10.8
=291 caps at 8 percent inflation
Real interest rates
(1+nominal interest rate)= (1+inflation)(1+real interest rates)
Real rate at 0 percent inflation
1.05=1(1+R)
R=1.05-1
R=0.05= 5%
Real rate at 5 percent inflation
1.05=1.05*(1+r)
R=0%
Real rate at 8 percent inflation
1.05=1.08*(1+r)
=-0.02
=-2%
Explanation:
I think it's 59 per cent.
Let me know if I was right.
Answer:
$1,456.23
Explanation:
Calculation for how much money will you have in ten years
First step is to calculate FV
Using this formula
FV= C*(((1 + i/100)^n -1)/(i/100))
Where,
C represent Cash flow per period
i representinterest rate
n represent number of payments
Let plug in the formula
FV= 38*(((1+ 4/100)^10-1)/(4/100))
FV = 456.23
(Note 3.8%*1000 will give us 38)
Now let calculate how much money you will have in ten years
Using this formula
Amount in 10 years = FV of interest+ Par value
Let plug in the formula
Amount in 10 years= 456.23+1000
Amount in 10 years = $1,456.23
Therefore the amount of money you will have in ten years is $1,456.23
Answer:
In between $23.3 and $32.7
Explanation:
standard deviation = $18
sample mean = $28
sample size = 40 students
Significance level = 1 - confidence interval = 1 - 0.9 = 0.1
Using the confidence interval calculator
90% Confidence Interval: $28 ± $4.68
($23.3 to $32.7)
With 90% confidence the population mean is between 23.3 and 32.7 based on 40 samples."