Suppose that currently the consumer prices index (CPI) is 359.7 and that at the same time last year it was 343.5. If an index-linked pension was £503 per month this time last year, calculate how much it should be per month now. (Give your answer to the nearest pound. Do NOT include the '£' sign. Assume the pension is index linked using the CPI.)

Suppose that currently the consumer prices index (CPI) is 359.7 and that at the same time last year it was 343.5. If an index-linked pension was £503 per month this time last year, calculate how much it should be per month now. (Give your answer to the nearest pound. Do NOT include the '£' sign. Assume the pension is index linked using the CPI.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose the CPI is 120 in year 1 and 150 in year 2. If First National Bank charges a nominal interest rate of 30 percent in year 2, what is the bank's real interest rate? Explain.
Do you think a negative nominal interest rate can happen? What about a negative real interest rate? Explain.
Suppose a loaf of bread sold for $3.00 in 2016. The price of bread then increases to $3.60 in 2017. The price index for bread in 2017, considering 2016 as the base year, is O 1.20 83.33 120 100 20
The cost of a gallon of gasoline was $0.57 in 1975. If the cost of gasoline grew with inflation what would the cost be in 2021? How does this compare this to the actual cost of gasoline in 2021? Explain your answer using a meaningful sentence. CPI in 1975 was 53.8 CPI in 2021 was 270.97
The following price index is available for a product: Year Price index 1 (base year) 100 2 106.4 3 109.5 4 116.3 5 120.5 If the price was £872 in Year 2, what is the price of the product in Year 5 (to 2 decimal places)? a. 769.97 b. 959.60 c. 844.46 d. 987.56
Define the Nominal Interest Rates?
The CPI in December of the year 2000 was equal to 174.6. In May of 2023, the most recent month available, the CPI was 304.2. If you made $35,000 in 2000, how much income would you have to make in March of 2023 to maintain the same purchasing power? Please show your work.
Is it possible for the nominal interest rate to be negative? Why or whynot?
Df