15. Total inflation rate for the last 30 years is 125%. What is the annual average...

Question

Question

15. Total inflation rate for the last 30 years is 125%. What is the annual average inflation rate?

business finance

Answer 1

Answer #1

Formula:
Future value = Present value×(1+Interest rate)^n

FV= PV×(1+r)^n

n= no.of years.
r = annual inflation rate.

annual inflation rate= 0.746585%
annual inflation rate = 0.75%

we need to caluulate latlatin rata (r) no 30 (n) Fv= 100 X1s ns let PV-rate 30 years before10D Зо 125- 10DC1+r)

Answer 2

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