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=
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.
To find the yearly equivalent of Argentina's monthly inflation rate, we need to multiply the monthly inflation rate by 12.
(a) Yearly equivalent of Argentina's 36% monthly inflation rate:
36% * 12 = 432%
Therefore, the yearly equivalent of Argentina's 36% monthly inflation rate is 432%.
To find the monthly equivalent of the US yearly inflation rate, we need to divide the yearly inflation rate by 12.
(b) Monthly equivalent of the US 3.5% yearly inflation rate:
3.5% / 12 = 0.29%
Therefore, the monthly equivalent of the US 3.5% yearly inflation rate is 0.29%.