If the inflation rate is 6% per year, how many (future) dollars will be required 10 years from now to buy the same things that $32,500 buys now? The (future) dollars required to buy the same things that $32,500 buys now is $ .
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- If the inflation rate is 6% per year, how many (future) dollars will be required 10 years from now to buy the same things that $32,500 buys now?
The (future) dollars required to buy the same things that $32,500 buys now is $ .
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- If the inflation rate is 6% per year and you want to earn a real return of 10% per year, how many future dollars must you receive 10 years from now for an investment of $10,000 today?.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)7When 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?
- What was the approximate value of the inflation rate in Q4 of 2021?Provided 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 )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.
- 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?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 $If the Consumer Price Index was 107 in one year and 104 in the following year, then the rate of inflation was approximately
- 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?Suppose you have $100,000 cash today and you can invest it to become a millionaire in 15 years. What is the present purchasing power equivalent of this $1,000,000 when the average inflation rate over the first seven years is 5% per year, and over the last eight years it will be 8% per year?According to the College Board, the average in-state tuition and fees at public 4-year colleges and universities increased from $1780 in 1990 to $9650 for the 2016–2017 school year (per full-time equivalent student). Calculate the relative change in public college cost over this time period, and compare it to the overall rate of inflation as measured by the CPI.