Respuesta :
Answer:
(1) Option (a) is true i.e inflation causes his purchasing power to go down.
(2)The inflation rate percentage is 45.5% .
Option (b) is correct .
(3) inflation rate percentage is 25.8% .
Option (d) is correct .
(4)Purchasing power is $ 2590.08 .
Option (c) is correct .
(5)Purchasing power is $ 43614.85.
Option (a) is correct .
Step-by-step explanation:
First part
As given
Art's grandfather is on a fixed income.
(As inflation rate is inversely proportional to purchasing power i.e if inflation rate increase than purchasing power decrease .)
Thus Option (a) is true .
Second part
Formula
[tex]Inflation\ rate\ percentage = \frac{Change\ in\ cost\times 100}{Last\ year\ cost}[/tex]
Where
Change in cost = Cost this year - Cost last year
As given
Freaky Flakes cost $1.78 last year. This year a box costs $2.59
Change in cost = 2.59- 1.78
= $ 0.81
Putting all the values in the formula
[tex]Inflation\ rate\ percentage = \frac{0.81\times 100}{1.78}[/tex]
[tex]Inflation\ rate\ percentage = \frac{810000}{17800}[/tex]
Inflation rate percentage = 45.5% (Approx)
Therefore the inflation rate percentage is 45.5% .
Option (b) is correct .
Third part
As given
Amy, a senior, bought a car last year so that she could drive to school on the days when she needed to stay after class for practice.
Amy spent $155 last year for gas.
This year Amy spent $195.
Change in cost = 195 - 155
= $40
[tex]Inflation\ rate\ percentage = \frac{40\times 100}{155}[/tex]
[tex]Inflation\ rate\ percentage = \frac{4000}{155}[/tex]
Inflation rate percentage = 25.8%
Therefore inflation rate percentage is 25.8% .
Option (d) is correct .
Fourth part
As given
If your annual income from a part-time job is $2,698
If the inflation rate is 4% .
Thus
Purchasing percentage = ( 100 - 4 ) %
= 96%
96 % is written in the decimal form
[tex]= \frac{96}{100}[/tex]
= 0.96
Let us assume that the purchasing power be x .
Than the equation becomes
x = 0.96 × 2698
x = $ 2590.08
Therefore purchasing power is $ 2590.08 .
Option (c) is correct .
Fifth part
As given
Bart had an income of $45,670 last year.
If the inflation rate is 4.5% .
Thus
Purchasing percentage = ( 100 - 4.5 ) %
= 95.5%
95.5 % is written in the decimal form
[tex]= \frac{95.5}{100}[/tex]
= 0.955
Let us assume that the purchasing power be x .
Than the equation becomes
x = 0.955 × 45670
x = $ 43614.85
Therefore purchasing power is $ 43614.85.
Option (a) is correct .
