Your investments increased in value by 16.3 percent last year, but your purchasing power increased by only 7.5 percent What was the approximate inflation rate? (Enter your answer as a percent rounded to 1 decimal place.)
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- Your investments increased in value by 14.2 percent last year but your purchasing power increased by only 5.4 percent. What was the approximate inflation rate?Say you own an asset that had a total return last year of 17 percent. Assume the inflation rate last year was 4.8 percent. What was your real return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)An investment offers a total return of 11 percent over the coming year. Alex Hamilton thinks the total real return on this investment will be only 7.4 percent. What does Alex believe the inflation rate will be over the next year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Inflation rate %
- The value of your investment increased by 9.77% last year, and your purchasing power decreased by 1.22%. What was the approximate inflation rate?Say you own an asset that had a total return last year of 10.4 percent. If the inflation rate last year was 4.3 percent, what was your real return?Say you own an asset that had a total return last year of 11.5 percent. If the inflation rate last year was 6.5 percent, what was your real return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Real return % ( Prev 7 of 10 Next
- After a 1 year investment you receive 7.4% interest (nominal) from your bank. However, looking at how prices have changed, you soon realize that the real rate of interest was actually 3.4%. How much was inflation during that year? Enter your answer as a percentage, rounded to 2 decimals, and without the percentage sign ('%'). For example, if your answer is 0.02345, then enter 2.35Assume that in 1974, interest rates were 7.443% and the rate of inflation was 12.065%. What was the real interest rate in 1974? How would the purchasing power of your savings have changed over the year? The real rate of interest in 1974 was %, which means that the purchasing power of your savings would have by %. (Round to three decimal places.)You know that the stated rate of return is not what you really earned. If the inflation rate last year was 4.5%, and your investment had a stated rate of 18%, what was your real return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Real return %
- Suppose you invest $1,500 in an account paying 6% interest per year. How much of this balance corresponds to interest on interest earned in the last (7th) period? (Dollar figures should be approximated to the nearest cent of a dollar, while rates should be expressed in percentage terms without using the "%" symbol and approximated to the nearest second decimal place.)Inflation is a general increase in prices and may be measured by the Consumer Price Index (CPI). Use Appendix A to answer the questions. a. In Year 1 the CPI was 100; 30 years later, it was 239. What was the annual rate of inflation? Round your answer to the nearest whole number. %2. If the bank paid me 9.98% interest per year and if my actual return (the increase in my purchasing power) was only 5.25%, what was the inflation rate during the year? (Show Work)