question archive Eleven years ago, a guitar cost $1,800
Eleven years ago, a guitar cost $1,800
Subject:FinancePrice:2.87 Bought7
Eleven years ago, a guitar cost $1,800. Today, that same guitar costs $3,650. What has been the inflation rate on this instrument?
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer:
FV = PV (1+R)n
$3650 = $1800 (1+R)^11
R = (3650/1800)^1/11 - 1
R= 1.066377-1
R= 0.0664 or 6.64%
