Concept explainers
Recall that the Consumer Price Index (CPI) is a measure of inflation reached by comparing current prices with base prices in
Item | CPI for Item in 2005 | CPI for Item in 2015 | Percent of Increase |
Milk | 3.310 | 2.1 |
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Mathematics All Around (6th Edition)
- The Oxford Dictionary defines the word nominal asa value that is “stated or expressed but notnecessarily corresponding exactly to the real value.[18]Develop a reasonable argument for why the termnominal rate is used to describe the annual percentagerate of an investment account that compoundsinterest.arrow_forwardSuppose that the population of a small city grew from 15000 people to 17,589 people during a 2 year period. What was the annual percentage growth rate during those two years? Answer with a percentage value that is rounded to the nearest tenth such as 8.1 or 13.0 for example.arrow_forward4.56% represents an average increase in average price per year. a student incorrectly calculated this average using 25%/5years=5% per year. Show this answer is not correct by calculating 5 successive 5% increases. What is 5 the year percent change using the 5% per year?arrow_forward
- 8–33. On Black Friday, Amazon.com featured an Echo 2nd Generation for $35 normally selling for $79. Calculate the dollar markdown and the markdown percent based on the selling price to the nearest whole percent.arrow_forwardThe current value of a company is $27 million. If the value of the company six years ago was $10 million, what is the company's mean annual growth rate over the past six years (to 1 decimal)?arrow_forwardAssuming the general level of inflation in Ghana is 15% per year; find the number of years it will take for prices to double. The currency of Ghana is called the cedi and its symbol is like that of the U.S. cent (¢), but placed in front of the quantitative amount like the dollar symbol.arrow_forward
- If an asset declines in value from $5,000 to $2,600 over nine years, what is the mean annual growth rate in the asset's value over these nine years? Enter your answer as a percentage. If needed, round your answer to two decimal digits.arrow_forwardA company's total sales (in millions of dollars) t months from now are given by S(t) = 0.03³ +0.5t² + 2t +3arrow_forward2. Find the seasonal index for each quarter.arrow_forward
- If the price of gold decreases at a monthly rate of 1.8%, by what percentage does it decrease in a year?arrow_forwardConsider golfers who led the Professional Golfers' Association of America (PGA) in winnings at different points in time. Note that the winnings are nominal figures (unadjusted for inflation). To convert the original earnings of Casper, Nicklaus, and Kite, use the formula for converting dollar figures from an earlier era into year 2018 U.S. dollars. Using those figures, fill in the following table, making sure to round your responses to the nearest U.S. dollar. Nominal Winnings U.S. CPI Year Golfer (Dollars) (1983 = 100) Winnings in 2018 Dollars 1968 Billy Casper 205,169 34.8 1973 Jack Nicklaus 308,362 44.4 1981 Tom Kite 375,699 90.9 2018 Tiger Woods 5,443,841 251.1 5,443,841 True or False: According to the previous table, the golfer with the highest PGA winnings in nominal dollars is the same as the golfer with the highest PGA winnings after adjusting for inflation. True O False 100% 54°F Cloudy PrtSc Insert Delete ト\ C F5 F6 F7 F8 F9 F10 F11 F12 F4 & * Backspace Nur Lo 96. + II COarrow_forwardThe table below reports the annual stock price in September for Apple from 2005 to 2014. Develop a simple index for the change in earning per share over the period. Use 2005 as the base period. percentages (e.g. 131.32 instead of 1.31)) (Indexes should be rounded to 2 decimal places and be in Year Earnings Per Share ($) Simple Index 2005 4.32 2006 4.14 2007 4.86 2008 5.94 2009 6.76 2010 10.08 2011 16.51 2012 23.65 2013 26.21 2014 29.86 Click here for the Excel Data File, Data file should open in a new browswer window. Select "File" then "Save As" to download the file to your computer and be able to use it in Excel. a. By what percent have stock prices changed from 2005 to 2009? b. By what percent have stock prices changed from 2005 to 2014? c. By what percent have stock prices changed from 2009 to 2014?arrow_forward
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill