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find the present worth of 1000 today (2021) in the year 1990 if the inflation rate of 12% is constant through the years
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- If the market interest rate is 12% per year and the inflation rate is 5% per year, the number of future dollars in year 7 that will be equivalent to $2000 now is best represented by the equation: (a) Future dollar amount = 2000(1 + 0.198)7 (b) Future dollar amount = 2000/(1.198)7 (c) Future dollar amount = 2000(1 + 0.12)7 (d ) Future dollar amount = 2000/(1.07)7Find the inflation rate necessary for something to cost exactly twice as much as it did 10 years earlier.What was the approximate value of the inflation rate in Q4 of 2021?
- When the inflation rate is 4% per year, how many inflated dollars will be required 20 years from now to buy the same things that $10,000 buys now?The cost of a wastewater treatment plant for a small town of 6000 people was estimated to be about $85/person in 2006. If a modest estimate of the rate of inflation is 2.5% for the period to 1984, what will be the per capita cost of the treatment plant in 2021?Find the annual worth equivalent in actual-dollars from year 1 to 8 of an investment of $28,000 now, if the inflation rate is 5.5% and the inflation-free interest rate is 15% per year.
- An environmental testing company needs to purchase equipment 2 years from now and expects to pay $50,000 at that time . At a real interest rate of 10% per year and inflation rate of 4% per year, what is the present worth of the cost of the equipment?A multinational security software company is planning an overseas expansion that will cost $43 million of today’s dollars 3 years from now. Due to a robust economy in Europe, the cost is expected to increase by 17% per year in each of the next 3 years. Assuming the inflation rate is 4% per year, determine the required annual deposit into a fund that earns the market rate of 10% per year to ensure that the amount needed in 3 years will be available. The required annual deposit is $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?
- Calculate the present worth of $35,000 to be received 6 years from now, if the predicted real rate of return is 15% per year and the inflation rate is 10% per year. The present worth of $35,000 is $ .You just made an investment in an insurance policy that is guaranteed to pay you $1.8 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 3.8% per year over the 20-year period?An automobile that cost $24,500 in 2018 had an equivalent model 4 years later that cost $29,250. If the increase is attributed to inflation, what was the average annual rate of inflation?