August 2004
Intermediate to advanced
656 pages
15h 28m
English
Content preview from Return on Software: Maximizing the Return on Your Software Investment
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Chapter 13 Self-Study Questions
| 2. | Price Index = ($1.50 / $1.00) * 100 = 150 | ||||||||||
| 3. | $60 * 150 / 100 = $90 | ||||||||||
| 6. | Annual inflation rate = (106.6 – 105.8) / 105.8 = 0.076 = 0.76% | ||||||||||
| 8. | Average annual inflation rate = 10th root of (105.8 / 88.0) – 1 = 0.0186 = 1.86% | ||||||||||
| 10. | k-bar = 1 – 10th root (13.0 / 23.8) = 5.9%. To show how the loss of purchasing power and inflation are related, 1/(1 – 0.059) = 1 – 0.062. | ||||||||||
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