§-Quick questions
NSWMaths Standard 2Year 12: Financial Mathematics
Quick questions on Inflation, CPI and real value for HSC Maths Standard 2
3short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is annual inflation rate (compound)?Show answer
If the time span is years and you want the equivalent annual compound rate (geometric mean):
What is real return on investment?Show answer
If a nominal return is and inflation is :
What is the CPI as a ratio machine?Show answer
Every calculation here is built from one idea: the ratio of two CPI values measures how prices changed between those two times. To find a percentage change, take the difference over the earlier value. To convert money from one year into another year's dollars, multiply by the ratio of the two CPIs. Use the larger value over the smaller one when moving to a later, higher-priced year.
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