The US inflation rate had been 3.5 % per year and the Argentinian inflation rate had been 36 % per month.
(a) What is the yearly equivalent of Argentina's 36 %monthly inflation rate?
(b) What is the monthly equivalent of the US 3.5 %yearly inflation rate?
A=
B=
2 answers
5/12
For B
Use the formula:
(1+.035)=(1+x)^12
Solve for x by taking the 12th root of 1.035 and then subtracting 1.
I'm still trying to figure out a.
Use the formula:
(1+.035)=(1+x)^12
Solve for x by taking the 12th root of 1.035 and then subtracting 1.
I'm still trying to figure out a.
1 answer