Base-Year Current Year Soda Price Soda Price 1 (base $0.54 $0.54 Year) $0.54 $0.75 $0.54 $0.80 4 $0.54 $1.00 In Table 10 ? the price of soda at the end of three years had increased by

2

5. What is the present value of a continuous wage flow lasting for 25 years at the constant rate of US$50000? Assurge an interest rate of 2.85%.

If you invest S1000 now, what is the future dollars for 10 years, when IR is 6% and inflation rate is 4%. "Type the final answer in the box without the currency sign"

(i) (ii) (iii) Given a consumer price index of 154.5 in the year 2019 and 165.3 in 2020, calculate the rate of inflation in 2020. The average price of a car was £35,650 in 2019. Calculate the revised price in 2020 based on the rate of inflation calculated in part (i). Assume that in 2019 Robert has invested £2000 in a bank account, which pays an annual interest rate of 6%. After a year has passed, he is paid £120 in interest. Explain whether Robert is now better off than he was the year before based on your answer in part (i).