Question

)the u.s. Government reports the rate of inflation both monthly and annually. Suppose that, for a particular month, the monthly rate of inflation is reported as 0.8%. assuming that this rate remains constant, what is the corresponding annual rate of inflation? Is the annual rate 12 times the monthly rate? Explain.

Answer 1

I know the answer the 2nd problem is no.

Answer 2

the annual rate can be approximated by the average of the monthly rates, but it might be more complicated than that.

Answer 3

do you want the answers?

Answer 4

but not explained.

Answer 5

1st.10.034%
2nd. no

Answer 6

10.034%? that doesn't make sense... oh. 10.034% in a year will have a monthly change of 0.8%?

Answer 7

maybe?
try it. 1.008^12

Answer 8

actually yes.