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Q: real interest rate
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As a percentage, $9.00 is equal to _____
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- Tom and Sue had W-2 earnings of $100,000 last year. They deposited $5,000 into each of their IRAs from money that was in their checking account. They also sold their five year old car for $1,000 less than it was worth. Due to a slow down in the housing market, the value of their home decreased by $25,000. What is their change in net worth? a. No change b. Minus $19,000 c. Minus $26,000 d. Plus $9,000 e. Plus $74,000Darren and Susan want to provide funding for their daughter Jerri, age 10, to attend four years of college, starting at age 18. The current annual cost of tuition is $19,000. Assume inflation of 6% and after-tax earnings of 5%. If the couple wants to have enough life insurance to assure adequate funds for Jerri when she begins college (should Darren die today), approximately what amount of life insurance covering Darren is needed for the college funding? (Round your answer to the nearest dollar.) A)$80,835 B)$83,166 C)$83,958 D)$80,071Charles has decided to open a lawn mowing company. To do so, he purchases mowing equipment for $4,000, buys gasoline ($1.50 in gas is required to mow each yard), and pays a helper $15.00 per yard. Prior to opening the lawn company, Charles earned $8,000 as a lifeguard at the neighborhood swimming pool. Assume the money he used to purchase the mowing equipment could otherwise have earned 1 percent per year in the bank and that the mowing equipment depreciates at 10 percent per year. Charles plans to mow 200 yards per year. What is Charles's implicit cost of production? Charles's implicit cost of production is $ per year. (Enter your response as an integer)
- Mary Ann requires approximately 30 pounds of bananas each month, January through June, and 35 pounds of bananas each month, July through December, to make banana cream pies for her friends. Bananas can be bought at a local market for 40 cents/lb. If Mary Ann’s cost of money is 3%, approximately how much should she set aside at the beginning of each year to pay for the bananasA rich singer has donated $355,841 to endow a university professorial chair in Bohemian Studies. If the money is invested at 18.03%, how much can be withdrawn each year, ad infinitum (indefinitely), to pay the Professor of B.S.?A young couple has made a nonrefundable deposit of the first month's rent (equal to $1000) on a one-year apartment lease. The next day they find another apartment that they like just as well, but its monthly rent is only $900. They plan to be in the apartment for a year. Should they switch to the new apartment? Assume an (annual) interest rate of 12%. Select one: True False
- In year one, Adam earns $1,000 and saves $100. In year 2, Adam gets a $500 raise so that he earns a total of $1,500. Out of that $ 1,500, he saves $ 200. What is Adam's MPC out of his $500 raise?Assume I won 8 million dollars in a lottery. I could take my winnings in installments of 2 million dollars a year for four years or a lump sum of fewer than 8 million dollars. If I take the installments, my first installment would come the day I claimed my winnings at the state lottery office. Assume that the interest rate is 7% per year and that there are no taxes on the winnings. Calculate what the lump sum should be so that it would exactly equal the present value of the stream of the future stream of installments from the lottery. You must show and explain your work to be given credit for this assignment. What would your answer change be if the first installment in the question above did not come until one year after I claimed my winnings. You must show and explain your work to be given credit for this assignment. Just three or four sentences for each question. However, I do need to see your work.Qs 15: Which one of the following statement regarding Factor of Production is correct? (a) It is the input that a firm uses in the production process. (b) It is the output which is produced in the production process. (c) It is the additional input that is required to achieve the maximum output. (d) It is the ratio of the output to that of the input of the production process.
- Janine and John share profits of their partnership in the ratio of 2:3. If Janine's share in the profit for last year was P 30,000.00, how much was John's share in the profit of the business?A 10-year government coupon bond has a face value of $1,000 and a coupon rate of 5% paid annually. Assume that the interest rate is 6% per year. What is the bond’s PV? (You can sum the PVs for each of the coupon payments and the final $1,000, or you can use the annuity formula in the text (at p. 103) to save some work.)XYZ corporation has budgeted P300,000 per year to pay for labor over the next five years. If thecompany expects the cost of labor to increase by P10,000 each year, what is the expected cost ofthe labor in the first year, if the interest rate is 10%