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How much is the present worth of $10 000 ten years from now under each of the following pa

How much is the present worth of $10 000 ten years from now under each of the following pa

How much is the present worth of $10 000 ten years from now under each of the following patterns of inflation, if interest is at 5 percent? On the basis of your answers, is it generally reasonable to use an average inflation rate in economic calculations? (a) Inflation is 4 percent. (b) Inflation is 0 percent for five years, and then 8 percent for five years. (c) Inflation is 8 percent for five years, and then 0 percent for five years. (d) Inflation is 6 percent for five years and then 2 percent for five years. (e) Inflation is 0 percent for nine years and then 40 percent for one year.
Abhinav 27-Nov-2019

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