Confused!!! Worng answer will get negative feedback ( thank you) The price of coal in 2020 is $58 per ton. The annual inflation between 2020 and 2030 is expected tobe 5.6%. The price of coal is assumed to escalate at an annual average rate of 7.1% as a result ofresource depletion (i.e., this escalation is independent of inflationary effects).What is the price of coal in the year 2030, expressed in 2000 dollars?(your answer must be rounded-off to the nearest dollars per billion joules, i.e., no decimal places)

here we calculate the price of coal in year 2030 by calculating the present worth and considering…

Answered: The price of coal in 2020 is $58 per…

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter7: Inflation

Section: Chapter Questions

Problem 4SQ

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Over the next year, the inflation rate will be 6%, while the nominal interest rate is 2% per year. What is the real value of $1,000 received one year from now? (That is, what amount of money now gives you the same purchasing power as $1000 in one year.) Round to two decimal places and do not enter the $ sign. If your answer is $1.333, enter 1.33. If your answer is $1.666, enter 1.67. If appropriate, remember to enter the - sign.
If the price of a good is $200 in 2015 and $204 in 2019, what is the inflation rate? A) 22% B) 20% C) 2% D) 200%
Suppose Frances is an avid reader and buys only mystery novels. Frances deposits $2,000 in a bank account that pays an annual nominal interest rate of 15%. Assume this interest rate is fixed-that is, it won't change over time. At the time of her deposit, a mystery novel is priced at $20.00. Initially, the purchasing power of Frances's $2,000 deposit is mystery novels. For each of the annual inflation rates given in the following table, first determine the new price of a mystery novel, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Frances's deposit after one year in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row down to the nearest mystery novel. For example, if you find that the deposit will cover 20.7 mystery novels, you would round the purchasing power down to 20 mystery novels under the assumption that…
The Canadian Consumer Price Index was approximately 98.5 (base year 1992) at the beginning of 1991. If inflation continued at an average annual rate of 3%, what was the index at the beginning of 2020?
Price of wine Price of coffee 2021 $5 $5 2022 $9 $6 Assuming that wine and coffee consumption are fixed as 10 wine and 20 cups of coffee. Calculate the inflation rate between 2021 and 2022. (Note: the cost of the basket in the base year is 120) 40% 35% 22.5% 28%
The consumer price index (CPI) of a country was approximately 200 at the beginning of year 2010. If inflation continued at an average rate of 2.5%, what would the index be at the beginning of year 2021?
If the consumer price index and inflation are currently 214.9 and 8.4%/year.respectively, what was the level of the consumer price index a year ago?
A father wants to save in advance for his eight-year-old daughter's college expenses. The daughter will enter the college 10 years from now. An annual amount of $20,000 in today's dollars (constant dollars) will be required to support her college expenses for four years. Assume that these college payments will be made at the beginning of each school year. (The first payment occurs at the end of 10 years.) The future general inflation rate is estimated to be 5% per year, and the interest rate on the savings account will be 8% compounded quarterly (market interest rate) during this period. If the father has decided to save only $500 (actual dollars) each quarter, how much will the daughter have to borrow to cover her freshman expenses? A. $2,683 B. $3,128 C. $2,377 D. $1,895
A man deposited his first paycheck of $2000 into a long-term savings account at a bank at an interest rate of 12% in 1951 as a gift to his future grandchild. Assume a steady inflation rate of 8%. If his grandchild withdraws that money today in 2021, how much actual money did they withdraw? How much purchasing power would this withdrawal have in 1951?
The Personal Consumption Expenditure (PCE) Price Index was 124.74 in November 2022, 124.62 in October 2022, 118.20 in November 2021, and 117.48 in October 2021. What is the year-over-year inflation rate in November 2022 calculated using PCE? (Enter your response rounded to two decimal places. That is, 7.877% should be entered as 7.88.)
Suppose Becky is an avid reader and buys only comic books. Becky deposits $3,000 in a bank account that pays an annual nominal interest rate of 10%. Assume this interest rate is fixed-that is, it won't change over time. At the time of her deposit, a comic book is priced at $15.00. Initially, the purchasing power of Becky's $3,000 deposit is comic books. For each of the annual inflation rates given in the following table, first determine the new price of a comic book, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Becky's deposit after one year in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row down to the nearest comic book. For example, if you find that the deposit will cover 20.7 comic books, you would round the purchasing power down to 20 comic books under the assumption that Becky will not buy…
The price of oil in 2005 was $3,350 per barrel. “This price is still lower than theprice of oil in 1981” says a government publication. If inﬂation has averaged 3.2% per year from 1981 to 2005, what was the price per barrel of oil in 1981?

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