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Can someone help me out with this please? If the market interest rate is 16% per year when the inflation rate is 9% per year,
Can someone help me out with this please?
If the market interest rate is 16% per year when the inflation rate is 9% per year, the real interest rate is closest to: (a) 6.4% (b) 7.3% (c) 8.3% (d) 9.4% (e) >9.5%. The cost of an F-150 pick-up truck was $29, 350 three years ago. If he cost increased only by the inflation rate and the price today is $33, 015, the inflation rate was closest to: (a) 3% (b) 4% (c) 5% (d) 6% (e) >6% In order to convert constant-value dollars into future dollars, it is necessary to: (a) Multiply by (1 + i)^n (b) Divide by (1 + f)^n (c) Divide by (1 + i^)n (d) Multiply by (1 + f)^n (e) Multiply by (1 + i_f)^n If the market interest rate is 12% per year and the inflation rate is 5% per year, the number of future dollars in year 7 that you will need in order to buy the same things you could buy now is represented by which of the following equations? (a) future dollar amount = 2000(1 0.198)^7 (b) future dollar amount = 2000/(1 +0.198)^7 (c) future dollar amount = 2000(1 + 0.12)^7 (d) future dollar amount = 2000/(1 + 0.198)^7 (e) future dollar amount = 2000 (1 + 0.05)^7 The number of dollars that would be accumulated now from an investment of $1000 twenty-five years ago if the market interest rate was 5% per year is closest to: (a) $1640 (b) $2360 (c) $3386 (d) $5430 (e) $5556 Step by Step Solution
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