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.

In canada, the reference base period for the cpi is 2002. by 2012, prices had risen by 21.6 percent since the base period. the inflation rate in canada in 2013 was 1.1 percent. calculate the cpi in canada in 2013. hint: use the information that “prices had risen by 21.6 percent since the base period” to find the cpi in 2012. use the inflation rate formula (inflation is the growth rate of the cpi) to find cpi in 2013, knowing the cpi in 2012 and the inflation rate. the cpi in canada in 2013 is round up your answer to the first decimal. 122.9 130.7 119.6 110.5