Economics ECON1100 Macro Lisa Chiarelli | Cust Home Grades Personalized Reviews

Question

Economics ECON1100 Macro Lisa Chiarelli | Cust Home Grades Personalized Reviews Discussion Course Materials Measuring the Cost of Living raded Assignment | Read Chapter 6 | Back to Assignment Due Sunday 01.21.18 at 11:00 PM Suppose your grandmother collected pension benefits of $350 a month in 2011. If the price index rose from 90 to 105 in the period 2011 to 2016, what should her pension benefits be per month for 2016 if they were fully indexed to inflation? Give the answer to the nearest dollar 13. Please enter a whole number, with no decimal point. Continue without saving Copyright NoticesTerms of Use Privacy Notice Security Notice Accessibility

Explanation / Answer

Current value of pension benefit = 350

Future value of benefits = ratio of price indices * current value of benefits

= 105/90 * 350 = $408.33

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