How is inflation calculated using the CPI, and also using the GDP deflator? Measuring Inflation Rate: Inflation is general increase in price of all goods and devices over a given period of time. Inflation rate can be measured using Consumer Price Index (CPI) or using GDP defl...
the total cost becomes ₹105. Upon adding ₹50 in value to the product, he sells it for ₹155. The GST on ₹155 is ₹7.75, but he can claim an input tax credit of ₹5 for the GST paid on raw materials. Therefore, the net GST liability of the manufacturer is ₹2.75...
Results are quickly calculated and candidates are given a percentage score that indicates if they passed or failed. Mock exam scoring systems are good indicators of how candidates will do on the actual exam and the process for grading mock CFA exams is much simpler than how CFA exams are ...
Both the CPI and the PPI measure inflation. PPI measures inflation from the viewpoint of the producers; the average selling price they receive for their output over time. The CPI measures inflation from the viewpoint of the consumer through the value of a basket of goods and services that co...
While DTI is a great tool you can use to get an idea of how much you can afford, it doesn’t take into account future variables, such as salary changes, inflation or other potential expenses. It also doesn’t distinguish between different types of debt. For example, student loans are lu...
Any interest is based on your marginal tax rate. Inflation can shrink your savings so it may not make sense to keep your money in a savings account if your goal is retirement. However, there are some reasons to use a savings account: ...
Housing inflation refers to the rising cost of living in or purchasing a home, and it’s a tricky and often misunderstood topic. Contributing to the confusion are numerous reports that measure different aspects of the housing market—home values, rent prices, and material costs, among others—wi...
The hoped-for solution of higher prices doesn’t fix the situation; after a point, adding more buying-power mostly produces inflation. Other solutions are needed. The world economy is reaching what has been called “Limits to Growth.” Figure 1. Chart made by Gail Tverberg showing the general...
Here’s what you need to know about how home insurance premiums are calculated in Canada. Whether you rent or own your home, there's a good chance you've purchased home insurance coverage to help protect your home and belongings. And if you've ever bought home insurance, you've probably...
Each of the assumptions in the WACC (beta,market risk premium) can be calculated in different ways, while the assumption around a confidence/probability factor is entirely subjective. Essentially, when it comes to predicting the future, it is by definition, uncertain. For this reason, all of ...