How many future dollars 10 years from now willhave the same buying power as $10,000 today?The market interest rate is 12% per year and the inflation rate is 7% per year.
Q: The Bank of England has an inflation calculator website that uses the UK price index to show how the…
A:
Q: If the inflation rate is 3% per year, how many years will it take for the cost of an item to double,…
A: GIVEN If the inflation rate is 3% per year, how many years will it take for the cost of an item…
Q: find the present worth of 1000 today (2021) in the year 1990 if the inflation rate of 12% is…
A: Given Rate of inflation i =12 which is constant through years Future value (2021) FV =1000 We have…
Q: A retrofitted space-heating system is being considered for a small office building. The system can…
A: Given A retrofitted space-heating system is being considered for a small office building. The…
Q: A country is experiencing an inflation rate of exactly 100 percent per month for 4 months. At the…
A: Inflation is the consistent rise in general price level over period of time . And growth of…
Q: For a present sum of $820,000, determine the annual worth (in then-current dollars) in years 1…
A: * SOLUTION :- * Given that , C = 820000 r = 13% = 0.13…
Q: The cost of construction material for large infrastructure projects are reportedly rising at an…
A: General inflation rate = 6% Inflation of construction material = 12%
Q: If the inflation rate is 7% per year and you want to earn a real return of 10% per year, how many…
A: PLEASE FIND THE ANSWER BELOW.
Q: The purchase of a car requires a $25 000 loan to be repaid in monthly instalments for four years at…
A: The actual dollar value of the 20th payment can be calculated as follows: Interest rate and the…
Q: Gillespie Gold Products, Inc., is considering the purchase of new smelting equipment. The new…
A: Inflation is the rate at which there is a general rise in the level of prices, goods and services in…
Q: An initial $2000 investment is made that returns profits of $1000 and 1500 in the first and second…
A: Given: Initial Investment=$1000 Profits in year 1=$1000 Profits in Year 2=$1500
Q: Inflation rates: 1) 1960 to 1970 __29.01%______ 2) 1970 to 1980 __105.82%______ 3) 1980 to 1990…
A: 1) 1960 to 1970 __29.01%______ 2) 1970 to 1980 __105.82%______ 3) 1980 to 1990 __63.75_______
Q: The federal-level Pell Grant program provides financial aid to needy college students. The grant…
A: a. Initial value (IV) is $5,550. New value (NV) is $5,730. Time period (n) is 2. The average…
Q: The new CEO of a high-tech incubator company wants to entice venture capitalists by promising a…
A:
Q: aki deposits P50,000 in a bank account at 6% compounded monthly for 5 years. If the inflation rate…
A: To solve this question, it is not necessary to analyze the five-year time period. it is enough to…
Q: Labor costs over a 4-year period have been forecast in thencurrent dollars as follows: $10,000,…
A: In economics IR (rate of Inflation) is a general increase in the PL (level of price) in an economy…
Q: A mutual fund investment is expected to earn 11% per year for the next 25 years. If inflation will…
A: For the calculation of the actual return, we have to know the real(R) rate or actual rate of return.…
Q: Assume the market interest rate is 8% per year and inflation averages 5% per year. calculate the…
A: those type of items that have a limited life, their perpetual equivalent annual worth is…
Q: A very generous grandfather is planning to leave his only granddaughter well off when she reaches…
A: Inflation adjusted interest rate is calculated as: if=i+f+i(f) Where: i: real interest rate f:…
Q: An economist has predicted that during the next 12 years, prices in the U.S. will increase 55%. He…
A:
Q: The cost of a well-equipped F-150 truck was $29,350 three years ago. If the cost increased only by…
A: Initial cost = $29, 350 Increased cost = $33, 015 Increment in cost = $33, 015 - $29, 350 = $3665
Q: Health care costs are reportedly rising at an annual rate that is triple the general inflation rate.…
A: In an economy, the inflation rate explains the variation in the market value of a commodity over a…
Q: small heat pump now costs $2,500 to purchase and install. It has a projected useful life of years…
A: Initial Cost 2,500 Maintenance Cost 75 Increased at 4% per year Annual Cost 700 Increased at…
Q: An engineer planning for her son’s college education made deposits into a separate high-risk…
A: Inflation rate (f) is 3%. Interest rate (i) is 15%.
Q: As an innovative way to pay for various software packages that your company sells, a high-tech…
A: Since the payment is made now in method 1, the present worth of the cost is $450,000. In method 2,…
Q: The number of dollars that have been accumulated now from an investment of $1000 twenty-five years…
A: Given: The investment amount- $1,000 Time Period- 25 years Market interest rate- 5% The inflation…
Q: Required information Aquatech Microsystems spent $185,000 for a communications protocol to achieve…
A: Inflation is the rate change in the worth of the Wholesale Price Index (WPI) on a year-on year…
Q: Suppose that the year you were born your father gifted your mother a brand new Honda City car worth…
A: Inflation refers to the increase in general price levels in an economy from one period to another.…
Q: 3. The future amount of P10,000.00 for a period of 8 years is equal to P34,165.55 considering…
A: Present value = 10000 Time period = 8 years Future value = 34165.55 Money worth = 10% per year…
Q: For a present sum of $720,000, determine the annual worth (in then-current dollars) in years 1…
A: Here the given sum is present value and we need to find FV with given interest and Inflation rate.
Q: A renewable energy industry is one of the promising sectors in future and play a major role in the…
A: Given the interest rate = 12% The present cost of upgrade = $200000 Time = 3 years
Q: A European-based cattle genetics engineering research lab is planning for a major expenditure on…
A: Investment requirement (I) is $5,000,000. Time period (n) is 4. Inflation rate (f) is 10 percent.
Q: A small heat pump now costs $2,400 to purchase and install. It has a projected useful life of 18…
A: Initial cost=$2400 Annual maintenance cost=$125per year and increase by 5% per year Annual cost of…
Q: An industrial robot with a controller, teach pendants, and job-specific peripherals has an initial…
A: The inflation rate is the rate at which the prices of goods rise in an economy. Given: Initial Cost…
Q: As part of modernizing the Kennesaw State University campus, the cost of constructing new digital…
A: The future amount is calculated by multiplying the present amount with the rate of interest. It is…
Q: An offshore services company is considering the purchase of equipment that has a cost today of…
A: (a) When the firm increases the price equal to the existing inflation rate, then the increasing…
Q: A renewable energy industry is one of the promising sectors in future and play a major role in the…
A: Renewable energy: It refers to the energy that is being produced with the help of renewable…
Q: A renewable energy industry is one of the promising sectors in future and play a major role in the…
A: Below is the given values: Cost to upgrade at present = $200000 Cost to upgrade in future that is…
Q: Some of the following future cash flows have been expressed in then-current (future) dollars and…
A:
Q: If inflation averages 2.5% each year from 2015 to 2025, what is the purchasing power in 2015 dollars…
A: Inflation represents rising prices and declining purchasing power of a currency.
Q: The costs associated with a small X-ray inspection system are $40,000 now and $24,000 per year, with…
A: Equivalent annual cost is the cost per year of owning, maintaining and operating an asset over its…
Q: An engineer who is now 65 years old began planning for retirement 40 years ago. At that time, he…
A:
Q: A small heat pump now costs $2,800 to purchase and install. It has a projected useful life of 15…
A: Initial Cost 2,800 Maintenance Cost 125 Increased at 6% per year Annual Cost 720 Increased at…
How many future dollars 10 years from now will
have the same
inflation rate is 7% per year.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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.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?A small mechanical consulting company is examining its future cash flow requirements. The president expects to replace office machines and IT equipment at various times over a 6-year planning period. Specifically, the company expects to spend $6000 two years from now, $9000 three years from now, and $5000 six years from now. What is the purchasing power (with respect to today’s dollars) of each expenditure in its respective year, if the inflation rate is 4% per year?
- 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?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 $ .An offshore services company is considering the purchase of equipment that has a cost today of $96,000. Inflation is a concern. The manufacturer plans to raise the price exactly in accordance with the inflation rate that may be somewhere between 1% and 8% per year. Develop a graph of how much the equipment will cost 3 years from now in terms of both (a) CV, and (b) future dollars.
- 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 $ .An industrial robot with a controller, teach pendants, and job-specific peripherals has an initial cost of $85,000 now, and the future cost will increase exactly by the inflation rate. The cost of a similar robot 3 years from now at a market interest rate of 10% per year and inflation rate of 4% per year is closest to: (a) $95,610 (b) $102,414 (c) $125,931 (d ) $127,261When 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 well-equipped F-150 truck was $29,350 three years ago. If the cost increased only by the inflation rate and the price today is $33,015, the inflation rate over the 3-year period was closest to: (a) 3% (b) 4% (c) 5% (d ) 6%Labor costs over a 4-year period have been forecast in thencurrent dollars as follows: $10,000, $12,000, $15,000, and $17,500. The general inflation rate for the 4 years is forecast to be 5%. Determine the constant-dollar labor costs for each of the 4 years.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)7