Posted by **sarah** on Sunday, May 13, 2007 at 12:33pm.

Choose the two true statements from the following.

a)if the AEI increases by 30% a year and the RPI increases by 11.0% in the same year, then real earnings have gone down by 8.0%

b)a new baby’s parents are given £400 to invest for the baby, to be left untouched until she is 18 years old, in an account which has a guaranteed rate of interest of at least t4.5% annum. If no more money is put into the account, there will be at least £880 in the account at the end of a full 18 years.

c)If the CPI is 130.0 and the base year was taken as five years ago, then the annual rate of inflation must be 6%.

d) The cost of a stereo system is advertised with a reduction of 30%. The buyer will pay more if VAT is added on before the reduction in price, instead of VAT being added on after the reduction in price.

e) A price ratio of 1.2 corresponds to price increases of 12%.

f) An index-linked pension is worth exactly the same in real terms year after year.

would it be D and A??

Choose the two true statements from the following.

a)if the AEI increases by 30% a year and the RPI increases by 11.0% in the same year, then real earnings have gone down by 8.0%

b)a new baby’s parents are given £400 to invest for the baby, to be left untouched until she is 18 years old, in an account which has a guaranteed rate of interest of at least t4.5% annum. If no more money is put into the account, there will be at least £880 in the account at the end of a full 18 years.

c)If the CPI is 130.0 and the base year was taken as five years ago, then the annual rate of inflation must be 6%.

d) The cost of a stereo system is advertised with a reduction of 30%. The buyer will pay more if VAT is added on before the reduction in price, instead of VAT being added on after the reduction in price.

e) A price ratio of 1.2 corresponds to price increases of 12%.

f) An index-linked pension is worth exactly the same in real terms year after year.

would it be D and A??

f is true, if the "index" is the cost of living index

c is false, becasue it neglects compounding

e is false; it corresponds to a 20% rise in price

because of missing ? infrmation, (b) cannot be answered.

I don't know ahat AEI and RPI are in (a)

## Answer this Question

## Related Questions

- math - A) If the AEI increases by 3.0% a year and the RPI increases by 11.0% in ...
- Mathamatics - Choose the two true statements from the following. Options A) If ...
- chem please help drbob222 - If the internal energy of an object remains constant...
- Prin of finance - Which of the following statements are true of a “two-for-one ...
- math - A man was injured in an accident at work he receives a disability grant ...
- microeconomics: work-leisure model - Consider the work-leisure model. Assume ...
- Math - This year, Ms. Nelson's class has 20 students. Which of the following ...
- math - in scatterplot comparing x and y, the y-values are along the vertical ...
- Statistics - As x increases, does the value of r imply that y should tend to ...
- Accounting - The Bayside Company uses the LIFO cost flow method to value ...