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3 years ago

Calculating inflation using a simple price index

Business

1 answer:

nekit [7.7K]3 years ago

7 0

Answer:

A. A new mobile device for personal computing became available for purchase.

C. Energy drinks became increasingly popular on college campuses between 2010 and 2012 due to significant improvements in flavor.

D. As the price of calculators rose, fewer students decided to buy them, opting instead to use the free calculators in their cell phones or on their computers.

Explanation:

A general increase in the price of commodities is known as inflation. the change in inflation is calculated using price index.

The statement that ilustrate why price indexes such as the CSPI might overstate inflation in the cost of going to collage are:

a new mobile device for personal computing became available for purchase.

as the price of calculators rose, fewer students decided to buy them, opting instead to use the free calculator in their cell phones or in their computers.

energy drinks became increasingly popular on collage between 2010 and 2012 due to significant improvements in flavour.

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Naddika [18.5K]

Answer:

The rate is greater than 8%

Explanation:

Given

$\small I = 1,000 \left (\left (1+\frac{r}{100} \right )^{n}-1 \right )$

Missing part of question

$I =210$

$n =2$

Required

Is r > 1

We have:

$\small I = 1,000 \left (\left (1+\frac{r}{100} \right )^{n}-1 \right )$

Substitute values for r and I

$210 = 1,000 \left (\left (1+\frac{r}{100} \right )^{2}-1 \right )$

Divide both sides by 1000

$0.210 = \left (\left (1+\frac{r}{100} \right )^{2}-1 \right )$

Add 1 to both sides

$1.210 = (1+\frac{r}{100} \right ))^{2}$

Take square roots of both sides

$\sqrt{1.210} = 1+\frac{r}{100}$

$1.1 = 1+\frac{r}{100}$

Subtract 1 from both sides

$0.1 = \frac{r}{100}$

Multiply both sides by 100

$r = 10$

$10 > 8$

Hence, the rate is greater than 8%

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3 years ago

Reflect on a issue of law and order being face the problem of Pakistani nation

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Answer:

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Explanation:

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Answer:

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