Question

In: Math

Average yearly inflation. If an item costs C at one time and D n years later,...

Average yearly inflation. If an item costs C at one time and D n years later, and Cxn = D, then we call x the average annual inflation factor (for example, x = 1.04 refers to an inflation rate of 4%).

At a 6% average annual inflation factor, it will take 12 years for the house to double.  If 6% is replaced by r%, bankers use 72/r to estimate the number of years. This is called the rule of 72. Graph this estimate and the actual answer over the interval 1 <= r <= 12. Comment on the accuracy of the rule of 72.

Solutions

Expert Solution


Related Solutions

Unit costs are defined as a.   Marginal costs b.   Total costs c.   Average costs d.   Implicit...
Unit costs are defined as a.   Marginal costs b.   Total costs c.   Average costs d.   Implicit costs e.   Inverse costs Group of answer choices 2. In the 1890s, German courts were taking a very different approach to cartels and antitrust. What did the German court rule in the pulp cartel case? a. It ruled the cartel was in monopoly that was illegal b. It ruled that cartels were illegal, but that the wood pulp cartel was not a true cartel...
7.3 Part D Bank Balance Sheet Item                             Amount         &n
7.3 Part D Bank Balance Sheet Item                             Amount            Duration       Interest Rate        Cash-type Securities       $50m                1.2 year             2.25% Commercial Loans          $100m             2.4 years           4.50% Mortgages                     $350m             8.0 years           6.50% Core Deposits                $270m             1.0 year             2.00% Notes Payable                $180m             2.0 years           4.50% 3. Off-Balance sheet futures hedge (Use balance sheet information above, 8 points) T-Bond futures contracts for the delivery of $100,000 face value are trading at 102-16, and have a duration...
A proton accelerates from rest in a uniform electric field of 610 N/C. At some later time, its speed is 1.4 106 m/s. (...
A proton accelerates from rest in a uniform electric field of 610 N/C. At some later time, its speed is 1.4 106 m/s. (a) Find the magnitude of the acceleration of the proton. m/s2 (b) How long does it take the proton to reach this speed? µs (c) How far has it moved in that interval? m (d) What is its kinetic energy at the later time? J
A proton accelerates from rest in a uniform electric field of 656 N/C. At some later...
A proton accelerates from rest in a uniform electric field of 656 N/C. At some later time, its speed is 1.26  106 m/s. (a) Find the magnitude of the acceleration of the proton. m/s2 (b) How long does it take the proton to reach this speed? µs (c) How far has it moved in that interval? m (d) What is its kinetic energy at the later time? J
The real risk-free rate, r*, is 2.6%. Inflation is expected to average 2.25% per year for the next 4 years, after which time it is expected to average 3.75%, forever.
The real risk-free rate, r*, is 2.6%. Inflation is expected to average 2.25% per year for the next 4 years, after which time it is expected to average 3.75%, forever. An 8-year corporate bond Issued by the Vondrell Corporation will yield 9.5%, which includes a maturity risk premium of 0.20 x (t – 1)%, where t is the bond maturity in years. Assume there is no liquidity premium on Vondrell bonds. What is the yield spread between Vondrell and an...
What is the average inflation rate in honduras in the last 5 years?Show the values and...
What is the average inflation rate in honduras in the last 5 years?Show the values and calculation
Find the number of N digit sequences from the alphabet a, b, c, d with an...
Find the number of N digit sequences from the alphabet a, b, c, d with an even number of a's and an odd number of b's
Write a C++ program to read N numbers. Find sum, product, and average of N numbers
Write a C++ program to read N numbers. Find sum, product, and average of N numbers
What is the average inflation rate in Libya and Mozambique the last 5 years?Show the values...
What is the average inflation rate in Libya and Mozambique the last 5 years?Show the values and calculation
SUMMARIZE YOUR CALCULATIONS AND USE MICROSOFT EXCEL. DRAW ONE GRAPH SHOWING AVERAGE FIXED COSTS, AVERAGE VARIABLE COSTS, AVERAGE TOTAL COSTS, MARGINAL REVENUE AND MARGINAL COSTS.
OUTPUT AVERAGE FIXED COST AVERAGE VARIABLE COST AVERAGE TOTAL COST 0 1 $180.00 $135.00 $315.00 2 $90.00 $127.50 $217.50 3 $60.00 $120.00 $180.00 4 $45.00 $112.50 $157.50 5 $36.00 $111.00 $147.00 6 $30.00 $112.50 $142.50 7 $25.71 $115.70 $141.41 8 $22.50 $121.90 $144.40 9 $20.00 $130.00 $150.00 10 $18.00 $139.50 $157.50 OUTPUT MARGINAL COST PRICE TOTAL REVENUE TOTAL REVENUE 0 $345.00 1 $300.00 2 $249.00 3 $213.00 4 $189.00 5 $165.00 6 $144.00 7 $126.00 8 $111.00 9 $99.00 10...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT