what will a box cereal cost in the year 2025?
2007-01-23 16:32:45 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
Depends on the inflation rate, the current price, and any changes in the cost of the goods used to produce the cereal or the cost of transporting the cereal.
This question is impossible to answer acurately given the number of influences,
If you assume that the only factor is inflation, and that this will be 3% each year, and that the cerial currently costs say $5, then I estimate it to be about $8.50.
I.e. $5.00 x (1 + 3%) ^ 18 years to 2025
Cheers
2007-01-23 17:00:26 · answer #1 · answered by Richard D 3 · 0⤊ 0⤋
you're talking about the futures market now--buy a billion boxes of cereal( or wheat or corn or barley,ect) now and x number of years from now,when a drought or flood or freeze,makes the pricr of cereal spike---then you just sell your futures--it's called selling short--and by the way, a box of cereal in 2025 will cost about a 1/3 of what it does now--i'll explain later
2007-01-24 06:34:07 · answer #2 · answered by wftxrabbit 2 · 0⤊ 0⤋