Calculate the average monthly inflation rate for the model


Problem

The average cost of a certain model car was $18,000 ten years ago. This year the average cost is $30,000.

(a) Calculate the average monthly inflation rate ( fm) for this model.

(b) Given the monthly rate fm , what is the effective annual rate, f, of inflation for this model.

(c) Estimate what these will sell for 10 years from now, expressed in today's dollars.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Calculate the average monthly inflation rate for the model
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