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If inflation averages 2.5% each year from 2015 to 2025, what is the
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- 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?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 )
- What was the approximate value of the inflation rate in Q4 of 2021?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.The future amount of $100,000 for a period of 8 years is equal to $396,763, considering money is worth 10% per year with an inflation rate of x percent per year. Find the value of x. no excel
- You are saving to buy a car which in 2022 costs $30,000. You intend to make 36 equal consecutive payments to an account starting one month from now. The interest rate is .5% per month, compounded monthly. If the inflation rate is 4% per year compounded annually, how much in actual dollars should the periodic payments be.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?For many years, college cost (including tuition, fees, room, and board) increases have been higher than the inflation rate, averaging 5% to 8% per year. According to the College Board’s Trends in College Pricing, the average total costs in 2015 dollars were $19,548 for students attending in-state 4-year public colleges and universities and $43,921 for students at 4-year private colleges and universities. Assume an additional $4000 per year for textbooks, supplies, transportation, and other expenses. Using a 7% per year inflation rate, (a) how much can a sophomore high-school student expect to spend on in-state tuition, fees, room, and board for the freshman year (3 years from now) at a 4-year public university, and (b) what is the estimated total cost for the second year at the university, if textbooks, supplies, etc. also increase at 7% per year?
- 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.: If inflation is 2.7% each year from 2021 to 2031, what is the purchasing power in 2021 dollars of $100,000 in 2031?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?