At an Annual Inflation Rate of 9

question 206

Multiple Choice

At an annual inflation rate of 9.5%, how long will it take the Consumer Price Index (CPI) to double? Round your answer to two decimal places. ​

• A) 7.64 year(s)
• B) 7.47 year(s)
• C) 7.38 year(s)
• D) 7.33 year(s)

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Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase an asset at a specified price within a certain time.

Put Option

A put option is a financial contract giving the option holder the right, but not the obligation, to sell a specified amount of an underlying asset at a specified price within a specified time.

Right to Buy

An option that gives the holder the right, but not the obligation, to purchase a specific asset at a set price within a certain timeframe.

Standard Time

The amount of time that should be required to complete a task or process based on normal working conditions and average worker performance.