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base year are as follows: points . 25 pizzas, $10 each . Rent of apartment, $600 per month . Gasoline and car maintenance, $100 per

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base year are as follows: points . 25 pizzas, $10 each . Rent of apartment, $600 per month . Gasoline and car maintenance, $100 per month Cell phone service, $50 per month n the year following the base year, the survey takers determine that pizzas have risen to $11 each, apartment rent is ntenance have ris and phone service has dro Instructions: Enter your respons decimal place. PI to three decimal places and the rate of inflation to one a. Find the CPI in the subsequent year and the rate of inflation between the base year and the subsequent year. CPI: Rate of inflation: ]% Here are values of the CPI (multiplied by 100) for each year from 2000 to 2010. For each year beginning with 2001, calculate the rate of inflation from the previous year. 0.26 points Instructions: Enter your re Skipped Inflation Rate (8) 2082 132 . 3 -BOOK 136.5 2084 2005 2096 144.4 148 .9 2087 152 . 5 155.0 2089 158 . 6 164 .2 found that the real entry -level wage for college graduates declined by so college graduates declined by 5 percent between 2003 and 2010. The nominal entry-level wage in 2010 was $14.35 per hour. 0.26 points Skipped Instructions : Enter your responses rounded to two decimal places . a. The real entry-level wage in 2010 was $ b. The real entry-level wage in 2003 was $ C. The nominal entry-level wage in 2003 was $ A report found that the real entry-level wage for college graduates declined by 6 percent between 2003 and 2010. 0.26 2010 Nominal Entry-Level Wage 2010 CPI 2083 CPI points Skipped Instructions: Enter your responses rounded to two decimal places Based on the information above -BOOK a. The 2010 real entry-level wage is $ b. The 2003 real entry-level wage is $ C. The 2003 nominal entry-level wage is $ on January 1, 2012, Albert invested $1,000 at 6 percent interest per year for three years. T 2015, the day Albert's investment matured, the CPI was 1 and the real rate of interest earned by Albert in each of points the three years and his total real return of al real return over the three-year period. Assume that interest earnings are reinvested each year and themselves earn interest. Skipped (Hint Calculate inflation and real interest for each year and then calculate it for the three years as a whole.) Instructions: Enter your responses rounded to one decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Year Real rate of interest 2012 2013 Total real rate of return: 1%. On January 1, 2012, Albert invested $5,000 at 5 percent interest per year for three years. The CPI (times 100) on january 1. 2012, stood at 100. On January i, 2015, the cr was ton on January 1, Toit, it was too; and on January 0.20 the three years and his total real return over the three-year period . Assume that interest earnings each year and themselves earn interest. Skipped (Hint. Calculate inflation and real interest for each year and then calculate it for the three years as a whole.) Instructions: Enter your responses rounded to one decimal place. If you are enteri numbers be sure to include a negative sign (-) in front of those numbers. Book Year Real rate of interest 2012 2013 2014

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