1)As reported by the Bureau of Labor Statistics, the CPI for Airfare in 2263 was
ID: 1098178 • Letter: 1
Question
1)As reported by the Bureau of Labor Statistics, the CPI for Airfare in 2263 was 579.6 (using a base year of 1914 = 100). The CPI for Airfare in 2264 was 617.9. Based on this data, what was the inflation rate of airfare from 2263 to 2264?
Enter your answer in decimal format, 4 decimal places.
For example, if the answer is 1.2345%, enter as follow: 0.01235
2)The bank is paying 6.67% compounded annually. The inflation is expected to be 5.58% per year.
What is the inflation rate?
Enter your answer as percentage, without the % sign.
For example, if 12.34%, enter: 12.34
3)The bank is paying 11.6% compounded annually. The inflation is expected to be 12.1% per year.
What is the market interest rate?
Enter your answer as percentage, without the % sign.
For example, if 12.34%, enter: 12.34
4)An economist has predicted 11.5% inflation during the next 13 years. How much will an item that presently sells for $19 bring 13 years later?
Enter your answer as follow: 123.45
5)The bank is paying 34.21% compounded annually. The inflation is expected to be 21.07% per year.
What is the inflation free interest rate?
Enter your answer as percentage, without the % sign.
For example, if 12.34%, enter: 12.34
6)A series of five constant-dollar (or real-dollar) uniform payment of $1,092.01 is made begining at the end of first year. Assume that the general inflation rate is 21.53% and the market interest rate is 21.53% during this inflationary period.
The equivalent present worth of the series is:
Enter your answer as follow: 1234.56
Explanation / Answer
4) 19(1.115)^13
5) (.3421-.2107)/(1+.2107)
6) good luck
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