8. If inflation causes the cost of automobiles to increase by 2.5% each year, what should a car cost today if it cost $21,000 5 years ago? а. $23,759.57 b. $21,000.00 C. $23,625.00 d. $21,525.00 е. $26,801.91 9. Assume you are thinking of buying a house currently priced at $169,000. If housing prices rise at an annual inflation rate of 3%, estimate the purchase price of a similar house if you wait 4 years before committing yourself to buying one. a. $190,210.99 b. $190,377.25 с. $190,518.44 d. $190,461.67 10. Suppose when you are 52 years old, the yearly statement you get from the Social Security Administration estimates that your monthly payment at age 66 will be $620. If inflation stays constant at 2%, what will be the purchasing power of that $620? а. $469.88 b. $8,665.56 с. $477.07 d. $595.92
8. If inflation causes the cost of automobiles to increase by 2.5% each year, what should a car cost today if it cost $21,000 5 years ago? а. $23,759.57 b. $21,000.00 C. $23,625.00 d. $21,525.00 е. $26,801.91 9. Assume you are thinking of buying a house currently priced at $169,000. If housing prices rise at an annual inflation rate of 3%, estimate the purchase price of a similar house if you wait 4 years before committing yourself to buying one. a. $190,210.99 b. $190,377.25 с. $190,518.44 d. $190,461.67 10. Suppose when you are 52 years old, the yearly statement you get from the Social Security Administration estimates that your monthly payment at age 66 will be $620. If inflation stays constant at 2%, what will be the purchasing power of that $620? а. $469.88 b. $8,665.56 с. $477.07 d. $595.92
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:8. If inflation causes the cost of automobiles to increase by 2.5% each year, what should a car cost today
if it cost $21,000 5 years ago?
a.
$23,759.57
b.
$21,000.00
С.
$23,625.00
d. $21,525.00
е.
$26,801.91
9. Assume you are thinking of buying a house currently priced at $169,000. If housing prices rise at an
annual inflation rate of 3%, estimate the purchase price of a similar house if you wait 4 years before
committing yourself to buying one.
а.
$190,210.99
b. $190,377.25
с.
$190,518.44
d.
$190,461.67
10. Suppose when you are 52 years old, the yearly statement you get from the Social Security
Administration estimates that your monthly payment at age 66 will be $620. If inflation stays constant at
2%, what will be the purchasing power of that $620?
a. $469.88
b. $8,665.56
с.
$477.07
d. $595.92
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