Solve the problem. 25) $4094 is deposited into a savings account at 1% interest, compounded annually. To the nearest year, how long will it take for the account balance to reach $1,000,000? C) 553 years D) 387 years A) 497 years B) 774 years 27) Use the rule of 70 to estimate the annual inflation rate (to the nearest tenth of a percent) that would cause the general level of prices to double in 27 years. B) 2.4% A) 396 27) C) 2.6% D) 2.9% 28) Ellen invests her money in a savings account which compounds interest quarterly and which gives an effective annual yield of 2.22%. What is the nominal rate? A) 2.24% B) 2.21% C) 2.19% 28) D) 2.20% 29) Miguel invests his money in a savings account which gives an effective annual yield of 2.14%. The nominal rate is 2.12%. How often does compounding occur- daily, monthly, quarterly, or semiannually? A) monthly B) semiannually C) quarterly D) daily 29) 30) Use the inflation proportion to estimate the 2017 price of a jacket which costs $280 in 2005. Assume that the price increased at the average annual rate shown in the table below. Round your answer to the nearest dollar. 30) Consumer Price Index* (Selected Years) Average % Change in Year CPI-U CPI-U 1980 82.4 13.5 1985 107.6 3.6 1990 130.7 5.4 1995 152.4 2.8 2000 172.2 3.4 2005 195.3 3.4 2010 218.1 1.6 2015 237.0 0.1 2016 240.0 1.3 2017 245.1 2.1 Data from Bureau of Labor Statistics. "The period 1982 to 1984: 100 A) $362 B) $357 C) $380 D) $351