Question
7. Suppose it turns out you're wrong, and there ends up being an average of 1 percent deflation over the next 30 years. What is
7. Suppose it turns out you're wrong, and there ends up being an average of 1 percent deflation over the next 30 years. What is the real interest rate in this case? Are you happy or sorry you took out this mortgage?
Use the following CPI data to answer questions 8 and 9:
| Year | CPI |
| 2012 | 230 |
| 2013 | 233 |
| 2014 | 236 |
| 2015 | 237 |
| 2016 | 240 |
| 2017 | 245 |
8. Tuition and required fees for full-time undergraduate students at John Jay were $5,759 in 2012 and $6,810 in 2016. By what percent has real tuition and required fees increased?
9. Suppose your yearly income in 2012 was $48,000 and in 2017 it was $53,000. By what percent has your yearly income increased?
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Auditing A Business Risk Approach
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
8th edition
978-0538476232
