Represents the change in prices of all goods and services

Assignment Help Physics

Reference no: EM131781587

Question: Purchasing power the consumer price index (CPI) represents the change in prices of all goods and services. The CPI is based on a 1982 base of 100, which means that the CPI of 195.3 in 2005 indicates that goods that cost $100 in 1982 cost $195.30 in 2005. For selected years from 1945 to 2009, the CPI can be modeled by

P(x) =14.06(1.042)^x

where x is the number of years from 1940.

(a) Find P(50) and P(75), and explain what each means.

(b) In what year will items costing $100 in 1982 cost $400, according to this model?

Reference no: EM131781587

Questions Cloud

Building competitive advantage in emerging technologies : Discuss the reasons why alliances are very important towards building competitive advantage in emerging technologies.

How long before the investment doubles : Compound interest if $10,000 is invested at 1% per month, the future value S at any time t (in months) is given by S = 10,000(1.01)t.

What is the current value of the stock : what is the current value of the stock, means you need to find the PV of the stream of cash flows over the 9 years

General staff and labor relations issues in health care : Analyze laws that govern general staff and labor relations issues in health care, and how they may be in conflict, from the perspective of a patient.

Represents the change in prices of all goods and services : Purchasing power the consumer price index (CPI) represents the change in prices of all goods and services. The CPI is based on a 1982 base of 100.

Discuss what is the required return : Preferred stock is a perpetuity, so we find the required return by dividing the annual dividend divided by the price

Journalize the above transactions for farr corporation : Purchased raw materials on account, $85,000. Journalize the above transactions for Farr Corporation in general journal form

Estimate the average daily shares traded : Daily shares traded on the NYSE for selected years from 1970 to 2006, the average daily shares traded (in thousands) on the New York Stock Exchange.

Discuss what is the current stock value : the company will maintain a constant 5% dividend growth rate forever. If the required return on the stock is 11%, what is the current stock value

User Account

All Pages