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Draw a cash flow diagram for easy understanding. a. The SK debt as of today amounts to 12 trillion. These balloons with an interest rate of 0.16 % yearly. Suppose the republic requires every earning individual to pay the debt by 2030, how much each of us would need to pay monthly (annual payment amortized in 12 equal payments), assuming that inflation is 3%, the interest rate is 5.6% compounded daily, and we will start the payment by the end of 2022? South Korea is estimated to have 110 million people, with a workforce of around 20%. b. In the year 2020, the stock market fell because of COVID-19. You started investing from the year 2003, with an initial capital of P50,000. During this year, the bank's offer stated "Earn 3.7% interest rate, compounded quarterly for 6 years!" After 6 years, P5,000 was liquidated from the accumulated amount due to placement fees, etc. The new lump sum was further increased with the new interest rate offered by the bank and was planned to be the interest rate forever. "Earn 45% interest rate, compounded semi-annually!" However, when the pandemic surged at the end of 2020, the bank notified everyone that they will stick with the latest interest rate but will apply an inflation rate of 1.89% until the end of 2025. How much will the investor earn/lose by 2025? C. Below is a year-end cash flow diagram in dollars, deferred in some years. MARR = 27% Find the value of the arrow indicated. 10,000 A = 20,000 30,000 Az = 40,000

Draw a cash flow diagram for easy understanding. a. The SK debt as of today amounts to 12 trillion. These balloons with an interest rate of 0.16 % yearly. Suppose the republic requires every earning individual to pay the debt by 2030, how much each of us would need to pay monthly (annual payment amortized in 12 equal payments), assuming that inflation is 3%, the interest rate is 5.6% compounded daily, and we will start the payment by the end of 2022? South Korea is estimated to have 110 million people, with a workforce of around 20%. b. In the year 2020, the stock market fell because of COVID-19. You started investing from the year 2003, with an initial capital of P50,000. During this year, the bank's offer stated "Earn 3.7% interest rate, compounded quarterly for 6 years!" After 6 years, P5,000 was liquidated from the accumulated amount due to placement fees, etc. The new lump sum was further increased with the new interest rate offered by the bank and was planned to be the interest rate forever. "Earn 45% interest rate, compounded semi-annually!" However, when the pandemic surged at the end of 2020, the bank notified everyone that they will stick with the latest interest rate but will apply an inflation rate of 1.89% until the end of 2025. How much will the investor earn/lose by 2025? C. Below is a year-end cash flow diagram in dollars, deferred in some years. MARR = 27% Find the value of the arrow indicated. 10,000 A = 20,000 30,000 Az = 40,000

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: Six Debates Over Macroeconomic Policy
Section: Chapter Questions
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Draw a cash flow diagram for easy understanding. a. The SK debt as of today amounts to 12 trillion. These balloons with an interest rate of 0.16 % yearly. Suppose the republic requires every earning individual to pay the debt by 2030, how much each of us would need to pay monthly (annual payment amortized in 12 equal payments), assuming that inflation is 3%, the interest rate is 5.6% compounded daily, and we will start the payment by the end of 2022? South Korea is estimated to have 110 million people, with a workforce of around 20%. b. In the year 2020, the stock market fell because of COVID-19. You started investing from the year 2003, with an initial capital of P50,000. During this year, the bank's offer stated "Earn 3.7% interest rate, compounded quarterly for 6 years!" After 6 years, P5,000 was liquidated from the accumulated amount due to placement fees, etc. The new lump sum was further increased with the new interest rate offered by the bank and was planned to be the interest rate forever. "Earn 45% interest rate, compounded semi-annually!" However, when the pandemic surged at the end of 2020, the bank notified everyone that they will stick with the latest interest rate but will apply an inflation rate of 1.89% until the end of 2025. How much will the investor earn/lose by 2025? C. Below is a year-end cash flow diagram in dollars, deferred in some years. MARR = 27% Find the value of the arrow indicated. 10,000 A = 20,000 30,000 Az = 40,000
Transcribed Image Text:Draw a cash flow diagram for easy understanding. a. The SK debt as of today amounts to 12 trillion. These balloons with an interest rate of 0.16 % yearly. Suppose the republic requires every earning individual to pay the debt by 2030, how much each of us would need to pay monthly (annual payment amortized in 12 equal payments), assuming that inflation is 3%, the interest rate is 5.6% compounded daily, and we will start the payment by the end of 2022? South Korea is estimated to have 110 million people, with a workforce of around 20%. b. In the year 2020, the stock market fell because of COVID-19. You started investing from the year 2003, with an initial capital of P50,000. During this year, the bank's offer stated "Earn 3.7% interest rate, compounded quarterly for 6 years!" After 6 years, P5,000 was liquidated from the accumulated amount due to placement fees, etc. The new lump sum was further increased with the new interest rate offered by the bank and was planned to be the interest rate forever. "Earn 45% interest rate, compounded semi-annually!" However, when the pandemic surged at the end of 2020, the bank notified everyone that they will stick with the latest interest rate but will apply an inflation rate of 1.89% until the end of 2025. How much will the investor earn/lose by 2025? C. Below is a year-end cash flow diagram in dollars, deferred in some years. MARR = 27% Find the value of the arrow indicated. 10,000 A = 20,000 30,000 Az = 40,000
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