Appreciation and Inflation (HSC SSCE Mathematics Standard): Quizzes
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Practise the questions
10 questions from this quiz
What is appreciation?
What is appreciation?
When assets increase in value over time
What does the Consumer Price Index (CPI) measure?
What does the Consumer Price Index (CPI) measure?
Changing prices of a basket of goods
What inflation rate range does the Reserve Bank of Australia target?
What inflation rate range does the Reserve Bank of Australia target?
2% to 3%
What happens to spending power when inflation rises?
What happens to spending power when inflation rises?
It decreases - same money buys less
Which formula calculates appreciation?
Which formula calculates appreciation?
In the formula , what does represent?
In the formula , what does represent?
Rate as a decimal
How should 5% be converted for use in the appreciation formula?
How should 5% be converted for use in the appreciation formula?
0.05
A 200,000 USD house appreciates at 8% p.a. for 1 year. Find its value using .
A 200,000 USD house appreciates at 8% p.a. for 1 year. Find its value using .
216,000 USD
A 500 USD item faces 3% inflation for 1 year. What is its new price?
A 500 USD item faces 3% inflation for 1 year. What is its new price?
515 USD
Why does appreciation lead to greater increases over time?
Why does appreciation lead to greater increases over time?
Growth compounds on the new higher value