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Interest and inflation are similar.
If it is compounded annually, then you multiply the value by 1.04 each year.
So...
If you start with $100.
At the end of the first year you have $104.
At the end of the second year, you have $104*1.04 = $108.16
At the end of the third year, you have $108.16*1.04 = $112.49
At the end of the fourth year, you have $112.49*1.04 = $116.99
At the end of the fifth year, you have $116.99*1.04 = $121.67
That means, after 5 years, on average, an item that had cost $100 the first year would now cost $121.67.
In general this is just averages, and nothing goes up at exactly the same rate.
If you had saved the $100 in a non interest bearing cash, or your wages had not increased over time, then your original $100 now has "buying power" equivalent to $100*(100/$121.67) = $82.19.
What else can I help you with?
How do you write 4 5th into a percent?
% rate = 4/5 * 100% = 80%
How do you turn 0.04 to a percent?
% rate= 0.04 * 100%= 4%
What is 4 out of 30 as a percent?
% rate:= 4/30 * 100%= 0.1333 * 100%= 13.33%
What is the rate of VAT if an article marked at rupees 5000 is sold for rupees 5200?
The VAT rate is 4 percent.
What percent is 4 of 1000000?
% rate:= (4/1000000) x 100%= 0.000004 x 100%= 0.0004%
What is the US national Inflation rate in 2010?
4 percent
If a person has money invested at 9 percent and the rate of inflation is 5 percent how much return are they actually making on their investment?
To find the real return on an investment, subtract the inflation rate from the nominal interest rate. In this case, if the investment earns 9 percent and inflation is at 5 percent, the real return is 9 percent - 5 percent = 4 percent. Therefore, the investor is actually making a return of 4 percent on their investment after accounting for inflation.
What would you expect the nominal rate of interest to be if the real is 4 percent and the expected inflation rate is 7 percent?
5
What is the percent of compound inflation on a long term care policy?
The percent of compound inflation of a long term care insurance policy depends on the choice of the policyholder, you may either choose 3%, 4% or 5% compound inflation rate. A compound inflation rate adds more money to your benefits compared to a simple inflation rate.
How much will 180000 dollars be in 20 years with 9 percent interest and 4 percent inflation rate?
477,567
Julia invested 3000 at an annual interest rate of 5 percent from last year to this year there has been a 4 percent inflation rate after a year the purchasing power of her investment?
rose by 1 percent
Julia invested 3000 at an annual interest rate of 5 percent. From last year to this year there has been a 4 percent inflation rate. After a year the purchasing power of her investment?
rose by 1 percent
Julia invested 3000 at an annual interest rate of 5 percent. From last year to this year there has been a 4 percent inflation rate. After a year the purchasing power of her investment .?
rose by 1 percent
House price is 250000 with 4 percent inflation rate how much will the house cost in five years?
If price of House is Rs. 2,50,000.00 Inflation 4% annually. After 5 years, Price of house will be: Future value = Present value (1+ inflation rate) ^ years i.e., 2,50,000.00 * (1+0.04)^5 = Rs. 3,04,163.23
The real risk-free rate of interest is 4 percent Inflation is expected to be 2 percent this year and 4 percent during the next 2 years Assume that the maturity risk premium is zero What is the yield?
The answers are 7%, 7.33%.
What is ideal inflation rate in India?
When compare to developed nations, Indian ideal inflation rate should be around 3-4%
From 1960 until 2012, the long-run average rate of inflation in the United States was?
about 4% From 1960 until 2012, the long-run average rate of inflation in the United States was: about 4%.
