A diamond ring will be worth P35,000 in 2023. How much was it when it was bought in 2019 if the annual inflation and interest rates for the period are 7% and 9%, respectively?
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A: Here we calculate the price of coal in the year 2030 expressed in 2000 dollars and calculate the…
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A: When the effects of collecting over time are taken into account, an effective interest rate is a…
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A: Given, PV=present value =10000i=real interest raten=5 years
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A: According to the Fisher equation, Real interest rate = Nominal interest rate - inflation rate…
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A: The value of inheritance (IH) is $50,000. Inflation rate (f) is 3%. Real rate of interest (i) is 4%.…
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A: Market interest rate (IM) can be calculated by using the following formula.
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A: Given, Real MARR=8% Inflation=6%
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A: Amount today is $5 million. inflation rate at 5% per year. time = 4 years
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A: Given Rate of inflation i =12 which is constant through years Future value (2021) FV =1000 We have…
Q: A man deposits P55, 000 in a bank account at 6% compounded monthly for 5 years. If the inflation…
A: * SOLUTION :-
Q: SA Forest Resources purchased forest acreage for $500,000 from which an estimated 200 million board…
A: For year 1, there was no harvesting of the board and so the cost depletion amount will be $0. For…
Q: aki deposits P50,000 in a bank account at 6% compounded monthly for 5 years. If the inflation rate…
A: To solve this question, it is not necessary to analyze the five-year time period. it is enough to…
Q: Generally speaking, hyperinflation is an annual rate of inflation above 25% 50% 0% 100%
A: Inflation refers to the increase in the general level of prices of goods and services in the…
Q: An economy is experiencing inflation at an annual rate of 5.6%. If this continues, what will a P500…
A: In the question, it is given that The annual rate of inflation is 5.6% or 0.056. The time period is…
Q: A mutual fund investment is expected to earn 11% per year for the next 25 years. If inflation will…
A: For the calculation of the actual return, we have to know the real(R) rate or actual rate of return.…
Q: This plant design, entitled “IIVSDROP: The First Ear Dropper Solution Manufacturing Plant in the…
A: The demand refers to the quantity demanded that is derived from the different units of the…
Q: Assume the market interest rate is 8% per year and inflation averages 5% per year. calculate the…
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A: The formula used for the below calculation- The equation for working out the future worth is as…
Q: A very generous grandfather is planning to leave his only granddaughter well off when she reaches…
A: Inflation adjusted interest rate is calculated as: if=i+f+i(f) Where: i: real interest rate f:…
Q: A small heat pump now costs $2,800 to purchase and install. It has a projected useful life of 12…
A: Given,
Q: The cost of a well-equipped F-150 truck was $29,350 three years ago. If the cost increased only by…
A: Initial cost = $29, 350 Increased cost = $33, 015 Increment in cost = $33, 015 - $29, 350 = $3665
Q: Health care costs are reportedly rising at an annual rate that is triple the general inflation rate.…
A: In an economy, the inflation rate explains the variation in the market value of a commodity over a…
Q: engineer invested P100,000 at an interest rate of 10% compounded annually. What will be the final…
A: Given investment = 100000 P Interest rate = 10 % Inflation rate = 8 % Time =…
Q: Assume you save $6000 each year starting this year until your planned retirement 40 years from now.…
A: Future value of annuity is calculated as follows.
Q: The maintenance on a machine is expected to be P6322 for the second year and an additional P1,750…
A: Given, Interest rate (r)= 5% Time (n) = 5 years Maintenance Cost = P6322 Additional Cost Per Year =…
Q: An engineer's salary was P50, 000.00 in 2006. The same engineer's salary in 2011 is P80, 000.00. If…
A: Given: Salary in 2006=P 50000 Salary in 2011=P 80000 Number of years: 2006-2011 To find: Average…
Q: The price of coal in 2020 is $58 per ton. The annual inflation between 2020 and 2030 is expected to…
A: here we calculate the price of coal in year 2030 by calculating the present worth and considering…
Q: A contract will guarantee you $25,000 per year for the next 5 years. The inflation rate is expected…
A: here we calculate the present worth of contract which are as follow-
Q: A man decided to deposit a certain amount of money on his son's 10th birthday, which will be…
A: FV = 280,000 Bank pay interest rate = 5.5% Rate of inflation = 8.7% n = (25 - 10) = 15 Year Note:-…
Q: A UK-based life insurance company will pay a cash-value sum of £500,000 when the insured reaches the…
A: The purchasing price (FV) is 500,000 pounds. The inflation rate (f) is 3%. The time period (n) is…
Q: You would like to buy a house that is currently on the market at $85,000, but you cannot afford it…
A: The market price of house = $85000 Inflation rate = 6% Time duration = 4 years
Q: A hundred thousand pesos now will become P341,655.49 in eight years at an interest rate of 10%…
A: Present value = P100,000 Future value or value after 8 years = P341655.49 Interest rate = 10% Time =…
Q: Assuming an average inflation rate of 6% during the past 10 years, how much would a car costing…
A: Given information, Future value (F)= P400k interest rate (r)= 6% time period (t)= 10 years To…
Q: (Please do the natural calculation) Because of peso devaluation, a car costing P175,000 is to be…
A: When the effects of collecting over time are taken into account, an effective interest rate is the…
Q: You would like to buy carcar t is currently on the market at $85,000, but you cannot afford it right…
A:
Q: A small heat pump now costs $2,400 to purchase and install. It has a projected useful life of 18…
A: Initial cost=$2400 Annual maintenance cost=$125per year and increase by 5% per year Annual cost of…
Q: You are the manager of a large crude-oil refinery. As part of the refining process, a certain heat…
A: We have been given with the following information : Company's cost of capital (i)=18% Replacement…
Q: The Bureau of Labor Statistics has a website (www.bls.gov) that contains a Consumer Price Index…
A: Purchasing power in 1913 = $2.5 million Purchasing power in 2016= $23930909 Number of years = 103…
Q: A software company’s labor requirements currently cost $350,000/year. The labor hour requirements…
A: a. The given details indicate that the company needs a labor supply cost of $350,000 per annum and…
Q: An asset costs $10,000 today. If inflation is 4% per year and interest is 12% per year, what will be…
A: Inflation: Inflation is an economic concept that is defined as a rise in the general price level of…
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A: Cost is increase equal to the inflation rate. The cost doubled in 10 years. If the cost (PC) is $10…
Q: The maintenance on a machine is expected to be P6322 for the second year and an additional P1,750…
A: Considering the information given, we have to calculate Interest rate per year = 5% N (term) = 5…
Q: This plant design, entitled “IIVSDROP: The First Ear Dropper Solution Manufacturing Plant in the…
A: Total cost is the expenditure that is incurred in the production of the goods. It means the total…
Q: If inflation averages 2.5% each year from 2015 to 2025, what is the purchasing power in 2015 dollars…
A: Inflation represents rising prices and declining purchasing power of a currency.
Q: An engineer who is now 65 years old began planning for retirement 40 years ago. At that time, he…
A:
Q: A bicycle tire company performed a web-based study of a popular tire retail price over time. The…
A: it is given that, the retail price is increased from $16 per tire to $19 per tire. the time period…
Q: To convert actual (inflated) dollars to constant purchasing power dollars (where n = difference in…
A: Formula to converting inflated dollars to constant purchasing power dollar= 1(1+r)n where n=…
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- How much will it cost to purchase a 15-year constant growth annuity paying $12,600 at the end of every year if it earns 5.5% compounded annually and is indexed to an inflation rate of 2% annually? (Round your final answer to 2 decimal places.)Omar's current annual salary is $54,000. How much will he need to earn (in dollars) 10 years from now to retain his present purchasing power if the rate of inflation over that period is 2%/year? Assume that inflation is continuously compounded. (Round your answer to two decimal places).Find the cost of each item in five years, assuming a constant inflation rate of 9% E.) HD TV set, $1600 F.) Small car, $19,000 G.) Large car, $28,000
- J 7 Q1. An economy is experiencing inflation at an annual rate of 5.6%. If this continues, what will a P500 bill in 2008 be worth in 2020 in terms of 2008s Peso value? Q2. Krista deposits P20,000 in a bank account at 4.4% compounded quarterly for 5 years. If the inflation rate of 5% per year continues for this period, calculate the purchasing power of the original principal.Today you borrowed $90,000 from a bank at an interest rate of 10.25%, compounded monthly. You are supposed to repay the loan and its interest charges in equal monthly payments over a 15-year period, with the first payment in a month from now. The estimated annual inflation rate is 6%, compounded monthly.(a) What is the amount of your monthly payments?(b) What is the bank's real effective annual rate of return on this deal after taking inflation into account?A very generous grandfather is planning to leave his only granddaughter well off when she reaches the age of 25. He plans to deposit a lump sum now, which is her 2nd birthday, such that she will have enough money to live comfortably without working for a salary. He wants her to receive an amountthat will have the same purchasing power as $2 million today. If he can invest the money and earn an average market interest rate of 8% per year while the inflation rate averages 4% per year, how much must he deposit now?
- In wisely planning for your retirement, you invest $15,000 per year for 20 years into a 401K tax-deferred account. Assume you make a real return of 10% per year when the inflation rate averages 2.5% per year. How many future dollars will you have in the account immediately after your last deposit? You will have $ future dollars in your account immediately after your last deposit.Today an investor withdraw P50,000.00 representing the accrued amount of his investment that matured. If he invests at 10% semi-annually for 10 years, how much did he invest in pesos? P18,750 P18,845 P19,700 P17,600You just made an investment in an insurance policy that is guaranteed to pay you $2.3 million 20 years from now provided you live that long. What will be the purchasing power of that amount with respect to today’s dollars if the market interest rate is 8% per year and the inflation rate stays at 4.7% per year over the 20-year period? The purchasing power of this amount is $ .
- A mutual fund investment is expected to earn 11% per year for the next 25 years. If inflation will average 3% per year during this 25-year period of time, what is the compounded value (in today’s dollars) of this savings vehicle when $10,000 is invested now?WHAT IS THE INFLATION RATE IF THE PRICE OF AN ELECTRIC FAN BECOMES P2000.00 IN 5 YEARS FROM THE ORIGINAL PRICE OF P1200.00?In wisely planning for your retirement, you invest $27,000 per year for 20 years into a 401K tax-deferred account. Assume you make a real return of 10% per year when the inflation rate averages 2.6% per year. How much will you be able to withdraw each year for 18 years, starting one year after your last deposit? The amount that you will be able to withdraw each year is $