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Business, 26.11.2019 17:31 psychocatgirl1

Abicycle tire company performed a web-based study of a popular tire retail price over time. the study indicated that price is set at $16.00 per tire, it was expected to increase to $19.00 over the next 5 years

a. determine the annual rate of inflation over 5 years to increase the price from $16.00 to $19.00.

b. determine the market interest rate that must be used in economic equivalence computations if inflation is considered and an 8% per year real interest rate is expected by this company.

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