--%>
Assignment Help - homework help

Rate of inflation

If the price index was 110 last year and is 121 this year, Calculate  this year’s rate of inflation? Determine the “rule of 70”? How long would it take for the price level to double if inflation persisted at (a) 2, (b) 5, and (c) 10 % per year?

E

Expert

Verified

This year’s rate of inflation is 10% or [(121 – 110)/110] ´ 100.

Dividing 70 by the annual percentage rate of rise of any variable (for example, the rate of inflation or population growth) will give the approximate number of years for doubling of the variable.

   Related Questions in Finance Basics

  • Q : Describe Reappropriation

    Reappropriation: The expansion of an appropriation’s accessibility for encumbrance and/or expenses beyond its set annihilation date and/or for a new point. Re-appropriations are usually authorized by statute for 1-year at a time however might be

    		•
  • Q : Sizes of the MPC and MPS Normal 0 false

    Normal 0 false false

    		•
  • Q : Determine the level of real output in

    Normal 0 false false

  • Q : State Section 31.00 Section 31.00 : It

    Section 31.00: It is a Control Section of Budget Act which specifies some administrative procedures. For illustration, the section subjects to the Budget Act appropriations to different sections of the Government Code, restricts the new positions a de

    		•
  • Q : Microeconomics or macroeconomics Denote

    Denote whether each of statements applies to microeconomics or macroeconomics: a. In Canada, the unemployment rate was 7.0 percent in January 2005. b. A Canadian software firm d

    		•
  • Q : Types of legal barriers to market entry

    Types of legal barriers to market entry exist: Kinds of legal barriers which make that difficult for the newer drug in the generic form towards entering market have been lack of the rigorous assessment about the patentability needs; thirty mouth stay

    		•
  • Q : Correlate each to the New Economy

    Normal 0 false false

  • Q : Define Price Increase Price Increase :

    Price Increase: Budget adjustment to reflect the inflation factors for particular operating expenses constant with the budget instructions from the Department of Finance.

    		•
  • Q : Healthcare Finance Issues Question 1 A.

    Question 1 A. What per visit price must be set for the service to break even? To earn an annual profit of $100,000? (10,000 * 5.00 - $500,000 - 50,000 = 0

    Q : Define Current Year Current Year (CY):

    Current Year (CY): It is a term utilized in budgeting and accounting to designate the operations of the current fiscal year in contrast to past or future periods.

    		•