A professional athlete signs a two-year contract in which the earnings c can be modeled by 2,400,000+ 500,000t, where t represents the year (a) Find the actual value of the athlete's contract in dollars. $ (b) Assuming an annual inflation rate of 3%, what is the present value of the contract in dollars? (Round your answer to the nearest cent.) 1
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- If the Consumer Price Index was 208.5 on January 1, 2010, and 10 years after it was 516.71. What was the inflation rate, compounded annually, over that 10-year period? If that rate continues to hold for the next 10 years, what Consumer Price Index can be expected on January 1, 2030?A machine cost $2,550 on January 1, 2014, and $3,930 on January 1, 2018. The average inflation rate over these four years was 7% per year. What is the true percentage increase in the cost of the machine from 2014 to 2018? (a) 14.95% (b) 54.12% (c) 7.00% (d) 17.58% (e) 35.11%.An engineer's salary was $40,000 in 2004. The same engineer's salary in 2011 is $75,000. If the company's salary policy dictates that a yearly raise in salaries reflect the cost of Jiving increase due to inflation, what is the average inflation rate for the period 2004-2012?
- You 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 5.1% per year over the 20-year period?A series of four annual constant-dollar payments beginning with $10,000 at the end of the first year is growing at the rate of 8% per year. Assume that the base year is the current year (n= 0). The market interest rate is 15% per year and the general inflation rate (f) is 7% per year. (a) Find the present worth of this series of payments, based on constant-dollar analysis The present worth is $ (Round to the nearest dollar.) don't use excel.You 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 man wishes to set aside money for his retirement at the age 65 in a fund which will have an amount equivalent to P60k with today’s purchasing power. The estimated inflation rate is 7.5%. If the fund will earn 8% compounded annually what amount should he invest now on his 40th birthday?An economist has predicted that during the next 12 years, prices in the U.S. will increase 55%. He expects a further increase of 25% in the subsequent 8 years. Compute the annual inflation rate, f, for the entire 20-year period.A retired couple has a fixed income of $3,500 per month. Assuming an annual inflation rate of 7% (compounded annually), what is the purchasing power (in dollars) of their monthly income in 5 years? (Round your answer to the nearest cent.)
- In 2019, the average salary of petroleum engineers was $98,400. Predict what their salary will be in 2028 if their salary increases only by the inflation rate. Assume the inflation rate over this time period is constant at 2.5% per year. Solve manually pleaseCross-Country Shipping, Inc. had “Revenues” of $5,750,000 during its most recent fiscal year and “Labor Costs” of $2,250,000. The firm is expecting an inflation rate of 6.0% during the coming year. Given this information calculate the following values for the coming year for Save-Rite Grocers: “Revenues:” “Labor Costs:”Health care costs are reportedly rising at an annual rate that is triple the general inflation rate. The current inflation rate is running at 4% per year. In 10 years, how much greater will health care costs be compared with a service/commodity that increases at exactly the 4% general inflation rate?