ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$1, 000.00
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$252.57
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$213.55
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$3, 959.26
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Detailed explanation-1: -Value of $1, 000 from 1945 to 2023 $1, 000 in 1945 is equivalent in purchasing power to about $16, 488.72 today, an increase of $15, 488.72 over 78 years. The dollar had an average inflation rate of 3.66% per year between 1945 and today, producing a cumulative price increase of 1, 548.87%.
Detailed explanation-2: -Value of $1, 000 from 1940 to 2023 $1, 000 in 1940 is equivalent in purchasing power to about $21, 369.29 today, an increase of $20, 369.29 over 83 years. The dollar had an average inflation rate of 3.76% per year between 1940 and today, producing a cumulative price increase of 2, 036.93%.
Detailed explanation-3: -$1, 000 in 1930 is equivalent in purchasing power to about $17, 914.37 today, an increase of $16, 914.37 over 93 years. The dollar had an average inflation rate of 3.15% per year between 1930 and today, producing a cumulative price increase of 1, 691.44%.
Detailed explanation-4: -First, subtract the CPI from the beginning date (A) from the later date (B), and divide it by the CPI for the beginning date (A). Then multiply the result by 100 to get the inflation rate percentage.