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Talja [164]
2 years ago
8

Imagine that you calculate the inflation rate of some economy using the CPI. You get that inflation in 2008 was 22.4%, in 2009 w

as 12.5% and in 2010 was 3.9%. For your method you used 2010 as the base year, but your friend (who is a mathematical genius) tells you that your calculations would be more accurate if you used as base year 2008. What will be true about these new calculations?
Business
1 answer:
Free_Kalibri [48]2 years ago
3 0

Answer:

The calculation will be more accurate, because the base year is the oldest.

CPI is calculated as

(P_n / P_base - 1)*100

as:

P_n prices at time n

The mathematical reason why it is better to take the oldest year is that % growth works better

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2 years ago
The brokers of Greater Gulf Realty and Brackish Bay Realty agreed to only work with clients near their own offices to allow each
Naddik [55]

Answer:

"Market allocation " would be the correct answer.

Explanation:

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5 0
2 years ago
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Answer:

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5 0
2 years ago
What is the future value of $1,500 after 5 years if the appropriate interest rate is 6%, compounded semiannually?
kap26 [50]
Hi there
The formula is
A=p (1+r/k)^kt
A future value?
P present value 1500
R interest rate 0.06
K compounded semiannual 2
T time 5 years
So
A=1,500×(1+0.06÷2)^(2×5)
A=2,015.87

Good luck
5 0
2 years ago
Which of the following is true?
Deffense [45]

Which of the following is true?

b.

net cash flow + cash outflow = cash inflow

Total Cash Inflow is basically Cash Reciepts, Cash inflow from Sale of Assets and the like. Cash Outflow refers to Expenses paid, Assets purchased etc. Net Cash flow is basically the difference between Cash Inflow and Cash Outflow, It could be negative if outflow is more than inflow and positive if inflow is more than outflow.

Observing the above explanation, B Seems like the correct Option.

8 0
2 years ago
Read 2 more answers
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