On january 1, 2012, albert invested $6,000 at 8 percent interest per year for three years. the cpi (times 100) on january 1, 2012, stood at 100. on january 1, 2013, the cpi was 110 on january 1, 2014, it was 120; and on january 1, 2015, the day albert’s investment matured, the cpi was 126. find the real rate of interest earned by albert in each of the three years and his total real return over the three-year period. assume that interest earnings are reinvested each year and themselves earn interest. hint: calculate inflation and real interest for each year and then calculate it for the three years as a whole. instructions: enter your responses rounded to one decimal place. if you are entering any negative numbers be sure to include a negative sign in front of those numbers. year real rate of interest2012 %2013 %2014 %total real rate of return: __%.

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500