An Annual Inflation Rate Of 4 Percent Essay

1506 Words Jun 25th, 2015 7 Pages
If you bought a house for $150,000 with an annual inflation rate of 4 percent, it would take about 18 years for the house’s worth to double based on the Rule of 72.
b. If you bought a Picasso painting at last week 's auction for $200,000 and the annual inflation rate is 10 percent, how long would it take to double your money? If you bought a painting by Picasso for $200,000 with an annual inflation rate of 10 percent, it would take around 7 years for the painting’s worth to double.
c. If you went to the car show and bought a 1965 Mustang in mint condition for $25,000 and the annual inflation rate was 8 percent, when would your investment double? If you bought a 1965 Mustang for $25,000 with an annual inflation rate of 8 percent, it would take around 9 years for the car’s worth to double based on the Rule of 72.
d. If your grandmother gave you her wedding ring, it was appraised at $1,200, and the annual inflation rate was 6 percent, how many years would it be before it was worth $2,400? If your grandmother gave you her wedding ring, which was appraised at $1,200 and it had an annual inflation rate of 6 percent; it would take about 12 years for the ring’s worth to become $2,400.
e. If you bought an antique lamp for $3,000 and the inflation rate was 3 percent, how many years would it be before your investment doubled in value? If I were to buy an antique lamp for $3,000 with an annual inflation rate of 3 percent, it would take around 24 years for the…

Related Documents