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- . Inflation is expected to average 2.4% per year for the next 44 years. How much money will be required, 44 years from now, to buy the same amount of goods and services as $1 does today?If the average annual inflation rate is 3.1%,how long will it take for the CPI index to double? (A doubling of the CPI index means purchasing power is cut in half.)If the inflation rate is 5.95% compounded annually, how long will it take for prices to double?
- If inflation averages 4 percent per year, how much purchasing power will$1.00 lose in 10 years?The inflation rate is expected to be 8% per year into the foreseeable future. How many years will it take for the peso's purchasing power to be one-half of what it is now?Suppose we have the following Treasury bill returns and inflation rates over an eight- year period: Year Treasury Bills Inflation 9.57% 12345678 7.96% 8.76 6.59 5.74 6.17 8.41 11.38 13.02 13.22 7.71 5.48 7.47 9.84 14.14 13.56 c. What is the average real return for Treasury bills over this period? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average real return
- Assuming an inflation rate of 3%, how long before prices double?All prices and costs are expected to rise at the general inflation rate of 2 percent after 1st year. won't this impact the calculation?Suppose we have the following Treasury bill returns and inflation rates over an eight year period: Year Treasury Bills Inflation 1 10.45% 12.55% 2 11.36 16.00 3 9.06 10.29 4 8.34 7.97 5 8.88 10.29 6 11.23 12.77 7 14.11 16.98 8 15.97 16.90 a. Calculate the average return for Treasury bills and the average annual inflation rate for this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Treasury bills % Inflation % b. Calculate the standard deviation of Treasury bill returns and inflation over this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Treasury bills % Inflation %…
- Consumer Price Index: At an annual inflation rate of 7.2%, how long will it take the Consumer Price Index (CPI) to double? Thank you.The two-year interest rate is 10.4%, and the expected annual inflation rate is 5.2%. a. What is the expected real interest rate? b-1. If the expected rate of inflation suddenly rises to 7.2%, what does Fisher's theory say about how the real interest rate will change? b-2. If the expected rate of inflation suddenly rises to 7.2%, what will be the new nominal rate? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 What is the expected real interest rate? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Expected real interest rate %An economy is experiencing inflation at an annual rate of 8%. If this continues, what will P2000 be worth three years from now in terms of today’s pesos?