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3 years ago

If your nominal income is $80,000 and your real income in base year prices is $71,500, what is the cpi?

1 answer:

4 0

<span>The consumer price index would change in concert with the real value of the income that the consumer has. In this case, the nominal value is 80,000 with a real value of only 71,500. Taking these two values and dividing them gives a quotient of 1.118, which is rounded up to 1.12, multiplied by 100 to give a CPI of 112.</span>

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Answer: values

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3 years ago

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a. the purpose of this proposal is to show how we can reorganize our department to improve our efficiency while keeping intact the values that have allowed us to succeed to this point.

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4 years ago

The projected benefit obligation was $80 million at the beginning of the year. Service cost for the year was $10 million. At the

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Answer:

$87 million

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The projected benefit obligation (PBO) is a measurement of the present amount of money needed by a company to cover future pension liabilities. PBO uses how long the employee will work and any increased future obligations to the employee's pension.

Given that:

PBO at the beginning of the year = $80 million

Service cost for the year = $10 million

Interest = Discount rate × PBO at beginning of the year = 5% × $80 million = 0.05 × $80 million = $4 million

Actuarial (gain) Loss = Amount paid - Expected money = $5 million - $4 million = $1 million

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3 years ago

Holding other things constant, an increase in the inflation rate in the US compared to China may cause the demand for dollar to

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3 years ago

Eric deposits 1000 into a bank account. The bank credits interest at a nominal annual rate of i convertible semiannually for the

FrozenT [24]

Answer:

1276.5

Explanation:

Today, Eric deposited an amount(PO) that is = 1000

The annual nominal Interest rate for the first 7 years = i

This is convertible semiannually.

As such,

The semi-annual interest rate for first 7 years = $\frac{i}{2}$

The number of semi-annual periods in 7 years (k) = 2*7 = 14

The magnitude of the deposit at end of year 7( P7),

= P7 == P0 * (1 + i/2)14 ------ equation 1

On the other hand,

The nominal interest rate after 7 years = 2i which is convertible quarterly

The effective quarterly interest rate = $\frac{2i}{4}$ = $\frac{i}{2}$

The number of quarters between the end of year 7 and year 10.5 = 4* (10.5 - 7) = 14

The amount of deposit at the end of year 10.5 year = P10.5

$P_{10.5}$ = $P_{7}$ * (1 + $\frac{i}{2}$ $_{14}$ ---equation 2

We are given the following:

$P_{10.5}$ =1980

We shall thus substitute this value into the equation as

1980 = $P_{7}$ *( 1 + i/2)14

Further, we have worked out that

P7 == P0 * (1- i/2)14 *(1

We shall therefore substitute equation 1 into equation 2 as follows

1980 = P0 * (1+ i/2)14 *( 1 + i/2)14

1980 = 1000* (1+ i/2)14 *( 1 + i/2)14

This can also be rewritten as

1000* (1+ i/2)14 *( 1 + i/2)14 =1980

(1+ i/2)14 *( 1 + i/2)14 =1980/1000

(1+ i/2)28 =1.98

(1+ i/2) = 1.981/28

(1+ i/2) = 1.0247

i/2 = 1.0247 -1

i/2 = 0.0247

1 = 0.0247 *2 =0.0494

At the end of year 5, the amount has accumulated to an amount = X

X = Po * ( 1 + i/2 )10

= 1000 * ( 1 + 0.0494/2)10

= 1000 * ( 1 + 0.0247)10

= 1000 + ( 1.0247)10

= 1000* 1.276467

= 1276.5

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3 years ago

If your nominal income is​ $80,000 and your real income in base year prices is​ $71,500, what is the​ cpi?

If your nominal income is $80,000 and your real income in base year prices is $71,500, what is the cpi?