For a present sum of $750,000, what is the annual worth (in then-current dollars) in years 1 through 5 if the market interest rate is 10% per year and the inflation rate is 5% per year?
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For a present sum of $750,000, what is the annual
worth (in then-current dollars) in years 1 through 5
if the market interest rate is 10% per year and the
inflation rate is 5% per year?
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- Please solve => For a present sum of $880,000, determine the annual worth (in then-current dollars) in years 1 through 4 if the market interest rate is 13% per year and the inflation rate is 5% per year. The annual worth is $ ______?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)7Provided the inflation rate is f percent per year, to determine the purchasing power of $10,000 ten years from now, the $10,000 must be:a. divided by (1 + f )10b. multiplied by (1 + f )10c. divided by (1+ 0.10) fd. divided by (1 + f )
- 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 $Aquatech Microsystems spent $183,000 for a communications protocol to achieve interoperability among its utility systems. If the company uses a real interest rate of 15% per year on such investments and a recovery period of 5 years, what is the equivalent annual worth of the expenditure in then-current dollars at an inflation rate of 6% per year?The future amount of P100,000 for a period of 8 years is equal to P341,655.49. Considering money is worth 10% per year with an inflation rate of "x " per cent per year, find the value of inflation rate.
- 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.The purchase of a car requires a $25 000 loan to be repaid in monthly instalments for four years at 9% interest compounded monthly. If the general inflation rate is 4% compounded monthly, find the actual- and constant-dollar value of the 20th payment.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 $ .
- Well-managed companies set aside money to pay for emergencies that inevitably arise in the course of doing business. If a commercial solid waste recycling and disposal company puts 0.5% of its after-tax income into such an account, how much will the company have after 7 years, provided the company’s after-tax income averages $15.2 million per year? The inflation and market rates are 5% per year and 9% per year, respectively.When all future cash flows are expressed in constant-value dollars, the rate that should be used to find the present worth is the:a. real MARR.b. inflation rate.c. inflated interest rate.d. inflated MARR.Colgate-Palmolive can purchase a piece of equipment now for $80,000 or buy it 3 years from now for an estimated $128,000. The MARR requirement is a real return of 15% per year. If an inflation rate of 4% per year must be accounted for, should the company buy the machine now or later?