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Hello, please help me with this I continue to get it incorrect. 8 . Interest, inflation, and purchasing power Suppose Megan is a cinephile and
Hello, please help me with this I continue to get it incorrect.
8 . Interest, inflation, and purchasing power Suppose Megan is a cinephile and buys only movie tickets. Megan deposits $3,000 in a bank account that pays an annual nominal interest rate of 10%. Assume this interest rate is fixedthat is, it won't change overtime. At the time of her deposit, a movie ticket is priced at $15.00. Initially, the purchasing power of Megan's $3,000 deposit is movie tickets. For each of the annual inflation rates given in the following table, first determine the new price of a movie ticket, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Megan's deposit after one year in the first row of the table foreach inflation rate. Finally, Photos - choice.JPG enter the value for the real interest rate at each of the given inflation rates. + Add to See all photos Hint: Round your answers in the first row down to the nearest movie ticket. For example, if you find that the deposit will cover 20.7 movie tickets, you would round the purchasing power down to 20 movie tickets under the assumption that Megan will not buy seven-tenths of a movie ticket. Choices for the drop arrow lines are as follows: Annual Inflation Rate 13% Number of Tickets Megan Can Purchase after One Year Real Interest Rate When the rate of inflation is greater than the interest rate on Megan's deposit, the purchasing power of her deposit course of the year. v cwer the 100, or220, or 270, or 388. 100, or 220, or 270: or 388. 100, or 194, or 270: or 388. rises, or falls, or remains the same.
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