Answer:
156.654
Step-by-step explanation:
162*.967=156.654
Answer:
They lose about 2.79% in purchasing power.
Step-by-step explanation:
Whenever you're dealing with purchasing power and inflation, you need to carefully define what the reference is for any changes you might be talking about. Here, we take <em>purchasing power at the beginning of the year</em> as the reference. Since we don't know when the 6% year occurred relative to the year in which the saving balance was $200,000, we choose to deal primarily with percentages, rather than dollar amounts.
Each day, the account value is multiplied by (1 + 0.03/365), so at the end of the year the value is multiplied by about
... (1 +0.03/365)^365 ≈ 1.03045326
Something that had a cost of 1 at the beginning of the year will have a cost of 1.06 at the end of the year. A savings account value of 1 at the beginning of the year would purchase one whole item. At the end of the year, the value of the savings account will purchase ...
... 1.03045326 / 1.06 ≈ 0.9721 . . . items
That is, the loss of purchasing power is about ...
... 1 - 0.9721 = 2.79%
_____
If the account value is $200,000 at the beginning of the year in question, then the purchasing power <em>normalized to what it was at the beginning of the year</em> is now $194,425.14, about $5,574.85 less.
Think of it this way: Lets add numbers in pairs, starting at the very outer 2 numbers (19 and 77) then go in by one and add the second number and the second to last (20 and 76), then (21 and 75) and so on. The sum of all of these pairs are all the same: 96. How many 96s will we have? Well since we're coming from each end toward the middle adding pairs we will have half the distance between 19 and 77, that is (77-19)/2 = 29. So we can actually just take 96*29 = 2784. This is the sum of all numbers between 19 and 77
Answer:
B
Step-by-step explanation:
because look at the chart sideways.