SlideShare a Scribd company logo
1 of 1
Download to read offline
1. What is the nominal price of an orange in 25 years if the real price is $3, and the inflation rate
is 2.5%?
$3.08
$5.43
$4.56
$5.56
2. The yield on a bond is 12% and inflation is expected to be 3%. Calculate the real interest rate
on the bond.
9%
8.74%
8.04%
9.28%
3. What is the real price of an orange in 10 years if the nominal price is $1.50, and the inflation
rate is 4%?
$1.50
$2.22
$1.01
$1.41
$3.08
$5.43
$4.56
$5.56
Solution
Answer:1 Nominal Price=$3*(1.025)25=5.56
Answer:2 Calculation of the Real interest rate:
Real interest rate=[(1+interest rate)/(1+inflation rate)]-1
=[(1.12/1.03)]-1
=8.74%
Answer:3 Real price=$1.50(1.04)10
=$2.22

More Related Content

More from americandigitalshop

1. Which of the following could pose a challenge in building partner.pdf
1. Which of the following could pose a challenge in building partner.pdf1. Which of the following could pose a challenge in building partner.pdf
1. Which of the following could pose a challenge in building partner.pdfamericandigitalshop
 
Mike is a graduating high school student. He received an outstanding .pdf
 Mike is a graduating high school student. He received an outstanding .pdf Mike is a graduating high school student. He received an outstanding .pdf
Mike is a graduating high school student. He received an outstanding .pdfamericandigitalshop
 
Mrs. Adams has experienced gradual but significant hearing loss and.pdf
 Mrs. Adams has experienced gradual but significant hearing loss and.pdf Mrs. Adams has experienced gradual but significant hearing loss and.pdf
Mrs. Adams has experienced gradual but significant hearing loss and.pdfamericandigitalshop
 
mrough (d) below Clok the icon 10 wew the uabie a. Find the probablit.pdf
 mrough (d) below Clok the icon 10 wew the uabie a. Find the probablit.pdf mrough (d) below Clok the icon 10 wew the uabie a. Find the probablit.pdf
mrough (d) below Clok the icon 10 wew the uabie a. Find the probablit.pdfamericandigitalshop
 
Michael has utility over going to Yoga (y) and going to a museum (m) .pdf
 Michael has utility over going to Yoga (y) and going to a museum (m) .pdf Michael has utility over going to Yoga (y) and going to a museum (m) .pdf
Michael has utility over going to Yoga (y) and going to a museum (m) .pdfamericandigitalshop
 
Meiosis and mitosis are both forms of cell division. However, the out.pdf
 Meiosis and mitosis are both forms of cell division. However, the out.pdf Meiosis and mitosis are both forms of cell division. However, the out.pdf
Meiosis and mitosis are both forms of cell division. However, the out.pdfamericandigitalshop
 
Metfi 120 (introduction to Weather and Climato) Orline - Unit 2 Revie.pdf
 Metfi 120 (introduction to Weather and Climato) Orline - Unit 2 Revie.pdf Metfi 120 (introduction to Weather and Climato) Orline - Unit 2 Revie.pdf
Metfi 120 (introduction to Weather and Climato) Orline - Unit 2 Revie.pdfamericandigitalshop
 
me Insert Draw Page Layout Formulas Data Review View Automate Tel.pdf
 me Insert Draw Page Layout Formulas Data Review View Automate  Tel.pdf me Insert Draw Page Layout Formulas Data Review View Automate  Tel.pdf
me Insert Draw Page Layout Formulas Data Review View Automate Tel.pdfamericandigitalshop
 
Match the terms with its best definition or description. Basic Eaming.pdf
 Match the terms with its best definition or description. Basic Eaming.pdf Match the terms with its best definition or description. Basic Eaming.pdf
Match the terms with its best definition or description. Basic Eaming.pdfamericandigitalshop
 
Match the words in the lenthand column to the appropriate blank in th.pdf
 Match the words in the lenthand column to the appropriate blank in th.pdf Match the words in the lenthand column to the appropriate blank in th.pdf
Match the words in the lenthand column to the appropriate blank in th.pdfamericandigitalshop
 
Match the vitamin or mineral with a good food source. There is ONLY o.pdf
 Match the vitamin or mineral with a good food source. There is ONLY o.pdf Match the vitamin or mineral with a good food source. There is ONLY o.pdf
Match the vitamin or mineral with a good food source. There is ONLY o.pdfamericandigitalshop
 
Mediate the movement of a single solute from one side of the membrane.pdf
 Mediate the movement of a single solute from one side of the membrane.pdf Mediate the movement of a single solute from one side of the membrane.pdf
Mediate the movement of a single solute from one side of the membrane.pdfamericandigitalshop
 
Max, a current lacrosse student-athlete, paid $10 to enter a March Ma.pdf
 Max, a current lacrosse student-athlete, paid $10 to enter a March Ma.pdf Max, a current lacrosse student-athlete, paid $10 to enter a March Ma.pdf
Max, a current lacrosse student-athlete, paid $10 to enter a March Ma.pdfamericandigitalshop
 
Math 10X Take Home Quiz 4 Sections 4.1 and 4.2 1. In the following pr.pdf
 Math 10X Take Home Quiz 4 Sections 4.1 and 4.2 1. In the following pr.pdf Math 10X Take Home Quiz 4 Sections 4.1 and 4.2 1. In the following pr.pdf
Math 10X Take Home Quiz 4 Sections 4.1 and 4.2 1. In the following pr.pdfamericandigitalshop
 
Matching- some answers may be used more than once agents that cause d.pdf
 Matching- some answers may be used more than once agents that cause d.pdf Matching- some answers may be used more than once agents that cause d.pdf
Matching- some answers may be used more than once agents that cause d.pdfamericandigitalshop
 
Matching Quiz Match the words in the first column to the best availab.pdf
 Matching Quiz Match the words in the first column to the best availab.pdf Matching Quiz Match the words in the first column to the best availab.pdf
Matching Quiz Match the words in the first column to the best availab.pdfamericandigitalshop
 
Match. Match these phyla to the descriptions. �a��b��c��d��e��ab��Phy.pdf
 Match. Match these phyla to the descriptions. �a��b��c��d��e��ab��Phy.pdf Match. Match these phyla to the descriptions. �a��b��c��d��e��ab��Phy.pdf
Match. Match these phyla to the descriptions. �a��b��c��d��e��ab��Phy.pdfamericandigitalshop
 
Mr. and Mrs. Ronaldo, first cousins from a Spanish family, welcomed t.pdf
 Mr. and Mrs. Ronaldo, first cousins from a Spanish family, welcomed t.pdf Mr. and Mrs. Ronaldo, first cousins from a Spanish family, welcomed t.pdf
Mr. and Mrs. Ronaldo, first cousins from a Spanish family, welcomed t.pdfamericandigitalshop
 
Match. Match the classes of Phylum Platyhelminthes to their descripti.pdf
 Match. Match the classes of Phylum Platyhelminthes to their descripti.pdf Match. Match the classes of Phylum Platyhelminthes to their descripti.pdf
Match. Match the classes of Phylum Platyhelminthes to their descripti.pdfamericandigitalshop
 
Most traits are quantitative traits. In your own words, what does tha.pdf
 Most traits are quantitative traits. In your own words, what does tha.pdf Most traits are quantitative traits. In your own words, what does tha.pdf
Most traits are quantitative traits. In your own words, what does tha.pdfamericandigitalshop
 

More from americandigitalshop (20)

1. Which of the following could pose a challenge in building partner.pdf
1. Which of the following could pose a challenge in building partner.pdf1. Which of the following could pose a challenge in building partner.pdf
1. Which of the following could pose a challenge in building partner.pdf
 
Mike is a graduating high school student. He received an outstanding .pdf
 Mike is a graduating high school student. He received an outstanding .pdf Mike is a graduating high school student. He received an outstanding .pdf
Mike is a graduating high school student. He received an outstanding .pdf
 
Mrs. Adams has experienced gradual but significant hearing loss and.pdf
 Mrs. Adams has experienced gradual but significant hearing loss and.pdf Mrs. Adams has experienced gradual but significant hearing loss and.pdf
Mrs. Adams has experienced gradual but significant hearing loss and.pdf
 
mrough (d) below Clok the icon 10 wew the uabie a. Find the probablit.pdf
 mrough (d) below Clok the icon 10 wew the uabie a. Find the probablit.pdf mrough (d) below Clok the icon 10 wew the uabie a. Find the probablit.pdf
mrough (d) below Clok the icon 10 wew the uabie a. Find the probablit.pdf
 
Michael has utility over going to Yoga (y) and going to a museum (m) .pdf
 Michael has utility over going to Yoga (y) and going to a museum (m) .pdf Michael has utility over going to Yoga (y) and going to a museum (m) .pdf
Michael has utility over going to Yoga (y) and going to a museum (m) .pdf
 
Meiosis and mitosis are both forms of cell division. However, the out.pdf
 Meiosis and mitosis are both forms of cell division. However, the out.pdf Meiosis and mitosis are both forms of cell division. However, the out.pdf
Meiosis and mitosis are both forms of cell division. However, the out.pdf
 
Metfi 120 (introduction to Weather and Climato) Orline - Unit 2 Revie.pdf
 Metfi 120 (introduction to Weather and Climato) Orline - Unit 2 Revie.pdf Metfi 120 (introduction to Weather and Climato) Orline - Unit 2 Revie.pdf
Metfi 120 (introduction to Weather and Climato) Orline - Unit 2 Revie.pdf
 
me Insert Draw Page Layout Formulas Data Review View Automate Tel.pdf
 me Insert Draw Page Layout Formulas Data Review View Automate  Tel.pdf me Insert Draw Page Layout Formulas Data Review View Automate  Tel.pdf
me Insert Draw Page Layout Formulas Data Review View Automate Tel.pdf
 
Match the terms with its best definition or description. Basic Eaming.pdf
 Match the terms with its best definition or description. Basic Eaming.pdf Match the terms with its best definition or description. Basic Eaming.pdf
Match the terms with its best definition or description. Basic Eaming.pdf
 
Match the words in the lenthand column to the appropriate blank in th.pdf
 Match the words in the lenthand column to the appropriate blank in th.pdf Match the words in the lenthand column to the appropriate blank in th.pdf
Match the words in the lenthand column to the appropriate blank in th.pdf
 
Match the vitamin or mineral with a good food source. There is ONLY o.pdf
 Match the vitamin or mineral with a good food source. There is ONLY o.pdf Match the vitamin or mineral with a good food source. There is ONLY o.pdf
Match the vitamin or mineral with a good food source. There is ONLY o.pdf
 
Mediate the movement of a single solute from one side of the membrane.pdf
 Mediate the movement of a single solute from one side of the membrane.pdf Mediate the movement of a single solute from one side of the membrane.pdf
Mediate the movement of a single solute from one side of the membrane.pdf
 
Max, a current lacrosse student-athlete, paid $10 to enter a March Ma.pdf
 Max, a current lacrosse student-athlete, paid $10 to enter a March Ma.pdf Max, a current lacrosse student-athlete, paid $10 to enter a March Ma.pdf
Max, a current lacrosse student-athlete, paid $10 to enter a March Ma.pdf
 
Math 10X Take Home Quiz 4 Sections 4.1 and 4.2 1. In the following pr.pdf
 Math 10X Take Home Quiz 4 Sections 4.1 and 4.2 1. In the following pr.pdf Math 10X Take Home Quiz 4 Sections 4.1 and 4.2 1. In the following pr.pdf
Math 10X Take Home Quiz 4 Sections 4.1 and 4.2 1. In the following pr.pdf
 
Matching- some answers may be used more than once agents that cause d.pdf
 Matching- some answers may be used more than once agents that cause d.pdf Matching- some answers may be used more than once agents that cause d.pdf
Matching- some answers may be used more than once agents that cause d.pdf
 
Matching Quiz Match the words in the first column to the best availab.pdf
 Matching Quiz Match the words in the first column to the best availab.pdf Matching Quiz Match the words in the first column to the best availab.pdf
Matching Quiz Match the words in the first column to the best availab.pdf
 
Match. Match these phyla to the descriptions. �a��b��c��d��e��ab��Phy.pdf
 Match. Match these phyla to the descriptions. �a��b��c��d��e��ab��Phy.pdf Match. Match these phyla to the descriptions. �a��b��c��d��e��ab��Phy.pdf
Match. Match these phyla to the descriptions. �a��b��c��d��e��ab��Phy.pdf
 
Mr. and Mrs. Ronaldo, first cousins from a Spanish family, welcomed t.pdf
 Mr. and Mrs. Ronaldo, first cousins from a Spanish family, welcomed t.pdf Mr. and Mrs. Ronaldo, first cousins from a Spanish family, welcomed t.pdf
Mr. and Mrs. Ronaldo, first cousins from a Spanish family, welcomed t.pdf
 
Match. Match the classes of Phylum Platyhelminthes to their descripti.pdf
 Match. Match the classes of Phylum Platyhelminthes to their descripti.pdf Match. Match the classes of Phylum Platyhelminthes to their descripti.pdf
Match. Match the classes of Phylum Platyhelminthes to their descripti.pdf
 
Most traits are quantitative traits. In your own words, what does tha.pdf
 Most traits are quantitative traits. In your own words, what does tha.pdf Most traits are quantitative traits. In your own words, what does tha.pdf
Most traits are quantitative traits. In your own words, what does tha.pdf
 

Recently uploaded

Measures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SDMeasures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SDThiyagu K
 
Q4-W6-Restating Informational Text Grade 3
Q4-W6-Restating Informational Text Grade 3Q4-W6-Restating Informational Text Grade 3
Q4-W6-Restating Informational Text Grade 3JemimahLaneBuaron
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsTechSoup
 
APM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across SectorsAPM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across SectorsAssociation for Project Management
 
Nutritional Needs Presentation - HLTH 104
Nutritional Needs Presentation - HLTH 104Nutritional Needs Presentation - HLTH 104
Nutritional Needs Presentation - HLTH 104misteraugie
 
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...christianmathematics
 
Unit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxUnit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxVishalSingh1417
 
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxSOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxiammrhaywood
 
social pharmacy d-pharm 1st year by Pragati K. Mahajan
social pharmacy d-pharm 1st year by Pragati K. Mahajansocial pharmacy d-pharm 1st year by Pragati K. Mahajan
social pharmacy d-pharm 1st year by Pragati K. Mahajanpragatimahajan3
 
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in DelhiRussian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhikauryashika82
 
Z Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot GraphZ Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot GraphThiyagu K
 
The basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptxThe basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptxheathfieldcps1
 
Holdier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdfHoldier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdfagholdier
 
IGNOU MSCCFT and PGDCFT Exam Question Pattern: MCFT003 Counselling and Family...
IGNOU MSCCFT and PGDCFT Exam Question Pattern: MCFT003 Counselling and Family...IGNOU MSCCFT and PGDCFT Exam Question Pattern: MCFT003 Counselling and Family...
IGNOU MSCCFT and PGDCFT Exam Question Pattern: MCFT003 Counselling and Family...PsychoTech Services
 
9548086042 for call girls in Indira Nagar with room service
9548086042  for call girls in Indira Nagar  with room service9548086042  for call girls in Indira Nagar  with room service
9548086042 for call girls in Indira Nagar with room servicediscovermytutordmt
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdfQucHHunhnh
 
General AI for Medical Educators April 2024
General AI for Medical Educators April 2024General AI for Medical Educators April 2024
General AI for Medical Educators April 2024Janet Corral
 
Disha NEET Physics Guide for classes 11 and 12.pdf
Disha NEET Physics Guide for classes 11 and 12.pdfDisha NEET Physics Guide for classes 11 and 12.pdf
Disha NEET Physics Guide for classes 11 and 12.pdfchloefrazer622
 

Recently uploaded (20)

Measures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SDMeasures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SD
 
Q4-W6-Restating Informational Text Grade 3
Q4-W6-Restating Informational Text Grade 3Q4-W6-Restating Informational Text Grade 3
Q4-W6-Restating Informational Text Grade 3
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The Basics
 
APM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across SectorsAPM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across Sectors
 
Nutritional Needs Presentation - HLTH 104
Nutritional Needs Presentation - HLTH 104Nutritional Needs Presentation - HLTH 104
Nutritional Needs Presentation - HLTH 104
 
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
 
Unit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxUnit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptx
 
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxSOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
 
social pharmacy d-pharm 1st year by Pragati K. Mahajan
social pharmacy d-pharm 1st year by Pragati K. Mahajansocial pharmacy d-pharm 1st year by Pragati K. Mahajan
social pharmacy d-pharm 1st year by Pragati K. Mahajan
 
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in DelhiRussian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
 
Z Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot GraphZ Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot Graph
 
The basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptxThe basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptx
 
Advance Mobile Application Development class 07
Advance Mobile Application Development class 07Advance Mobile Application Development class 07
Advance Mobile Application Development class 07
 
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
 
Holdier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdfHoldier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdf
 
IGNOU MSCCFT and PGDCFT Exam Question Pattern: MCFT003 Counselling and Family...
IGNOU MSCCFT and PGDCFT Exam Question Pattern: MCFT003 Counselling and Family...IGNOU MSCCFT and PGDCFT Exam Question Pattern: MCFT003 Counselling and Family...
IGNOU MSCCFT and PGDCFT Exam Question Pattern: MCFT003 Counselling and Family...
 
9548086042 for call girls in Indira Nagar with room service
9548086042  for call girls in Indira Nagar  with room service9548086042  for call girls in Indira Nagar  with room service
9548086042 for call girls in Indira Nagar with room service
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
 
General AI for Medical Educators April 2024
General AI for Medical Educators April 2024General AI for Medical Educators April 2024
General AI for Medical Educators April 2024
 
Disha NEET Physics Guide for classes 11 and 12.pdf
Disha NEET Physics Guide for classes 11 and 12.pdfDisha NEET Physics Guide for classes 11 and 12.pdf
Disha NEET Physics Guide for classes 11 and 12.pdf
 

1. What is the nominal price of an orange in 25 years if the real pr.pdf

  • 1. 1. What is the nominal price of an orange in 25 years if the real price is $3, and the inflation rate is 2.5%? $3.08 $5.43 $4.56 $5.56 2. The yield on a bond is 12% and inflation is expected to be 3%. Calculate the real interest rate on the bond. 9% 8.74% 8.04% 9.28% 3. What is the real price of an orange in 10 years if the nominal price is $1.50, and the inflation rate is 4%? $1.50 $2.22 $1.01 $1.41 $3.08 $5.43 $4.56 $5.56 Solution Answer:1 Nominal Price=$3*(1.025)25=5.56 Answer:2 Calculation of the Real interest rate: Real interest rate=[(1+interest rate)/(1+inflation rate)]-1 =[(1.12/1.03)]-1 =8.74% Answer:3 Real price=$1.50(1.04)10 =$2.22