An investment grew in value from $14,380 to $21,570 during a five-year period. During that same period,

Question:

An investment grew in value from $14,380 to $21,570 during a five-year period. During that same period, the Consumer Price Index rose from 116.5 to 125.2. What was the compound annual real rate of return during the five years?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals Of Business Mathematics In Canada

ISBN: 9781259370151

3rd Edition

Authors: F. Ernest Jerome, Jackie Shemko

See More Books

Question Posted: Oct 21, 2020 05:37 AM

See More Questions

An investment grew in value from $5630 to $8485 during a five-year period. The annual rate of inflation for the five years was 2.3%. What was the compound annual real rate of return during the five...
An investors portfolio increased in value by 93% over a seven-year period in which the Consumer Price Index rose from 95.6 to 115.3. What was the compound annual real rate of return on the portfolio...
An investors portfolio increased in value from $35,645 to $54,230 over a six-year period. At the same time, the Consumer Price Index rose by 26.5%. What was the portfolios annually com- pounded real...
Abardeen Corporation borrowed $90,000 from the bank on October 1, 2016. The note had an 8percent annual rate of interest and matured on March 31, 2017. Interest and principal were paid in cash on the...
The compression ratio of an air standard Otto cycle is 8. Prior to isentropic compression, the air is at 100 kPa, 20oC and 500 cm3. The temperature at the end of combustion process is 900 K....
. How could regression analysis help you determine poorly selling brands?
LetX be an Ornstein-Uhlenbeck process with a long-run mean of zero; that is, dX = X dt + dB for constants and . Set Y = X2. Show that dY = ( Y)dt + Y dB for constants , and . Note: The squared...
Craxton Engineering will either purchase or lease a new $756,000 fabricator. If purchased, the fabricator will be depreciated on a straight-line basis over seven years. Craxton can lease the...
ware Company reported the following: n Manufacturing costs Units manufactured Units sold Beginning inventory $2,000,000 50,000 47,000 units sold for $75 per unit 0 units What is the average...
John and Marsha are married and filed a joint return for the past year. During that year, Marsha was employed as an assistant cashier at a local bank and, as such, was able to embezzle $ 75,000, none...
The proceeds from the sale of a $4500 five-year promissory note bearing interest at 5% compounded quarterly were $5277.81. How many months before its maturity date was the note sold if it was...
The following table shows the rates of total return in successive gears from 2011 to 2015 for the Renaissance Global Health Care Fund and for the benchmark Toronto Stock Exchange S&P/TSX Composite...
How can human behavior be considered one of the biggest potential threats to operating system integrity?
Small town Diners has a policy of treating dividends as a passive residual. It forecasts that net earnings after taxes in the coming year will be $500,000. The firm has earned the same $500,000 for...
Part 1-Chi-Square Goodness-of-Fit Tests A health psychologist was interested in women's workout preferences. Of the 56 participants surveyed, 22 preferred running, 8 preferred swimming, 15 preferred...
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,070,000, and it would cost another $21,000 to install it. The machine falls...
Problem 1. (10 points) Consider the space X = R22 and the map L XX defined as traceX -traceX L:X X = X 0 0 1. Show that L is a linear map; 2. Find the matrix representation M = mat L in the canonical...
Suppose that the exchange rate is 1.25 = 1.00. Options (calls and puts) are available on the Philadelphia exchangein units of10,000 with strike prices of $1.60/1.00. Options (calls and puts) are...
What is a parabola?
a) Calculate the goodwill that was paid by Major Ltd on the acquisition of Minor Ltd. [10 marks] b) Prepare the consolidated statement of financial position for Major Ltd at 31 July 20X8. [30 marks]...
Apply the Friedman test to the accompanying table of data to determine whether we can conclude that at least two population locations differ. (Use Î± = .10.) Treatment Block 2 3 12 10 15...
a. Four random samples of 50 people each were asked to rate four different computer printers in terms of their ease of use. The responses are: Very easy to use Easy to use Difficult to use Very...
Using the KruskalWallis test, determine whether there is enough evidence provided by the accompanying data to enable us to infer that at least two population locations differ. (Use Î± =...
Suppose First Fidelity Bank engaged in the following transactions: (Click the icon to view the transactions.) Journalize the 2018 and 2019 transactions on First Fidelity's books. Explanations are not...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net...
Supply costs at Coulthard Corporation's chain of gyms are listed below: March April May June July August September October November Client-Visits 11,666 11,462 11,994 13,900 11,726 11, 212 12,006...

An investment grew in value from $14,380 to $21,570 during a five-year period. During that same period,

Question:

Step by Step Answer:

To simply maintain purchasing power 14380 must grow to 143801...View the full answer

Fundamentals Of Business Mathematics In Canada

Students also viewed these Mathematics questions