If the price of attending Big Benefits University is $8,000 a year for tuition, fees, books, and and $25,000 in foregone earnings, what is the marginal cost of attending, if it takes you 5 years to graduate, and you assume a 3% annual inflation rate?

Q: How much more is a perpetuity of $2,000 worth than an annuity of the same amount for 10 years?…

A: Formula using here,  PV of perpetuity =Amountinterest rate =20004%=$50,000

Q: Suppose your salary in 2015 is $40,000. Assuming an annual inflation rate of 9%, what salary do you…

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Q: Suppose your salary in 2012 is $70,000. Assuming an annual inflation rate of 7%, what salary do you…

A: Given that the salary in 2012 is $ 70,000 and inflation rate 7 % So, Inflation rate (r) = 7 %=0.07…

Q: If the average inflation rate is 2%, how long is it until purchasing power is cut in half?

A: Consider the provide information,  The general formula if the inflation averages a rate of r over n…

Q: Jared was receiving rental payments of $4,000 at the beginning of every month from the tenants of…

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Q: at  simple what interest rate per annum will P20,000 accumulate to P25,000 in 3 years?

A: Given Amount(A) = 25000 Principle(P) = 20000 Time(T) = 3years

Q: A new truck costing $50,000 with a residual value of $4,000 has an estimated useful life of five…

A: given that new truck cost = $50,000 residual value = $4,000

Q: What is the total amount of money that you will owe at the end of 4 years if you borrow $5600 for 4…

A: Consider the given information. P=$5600 r=3% t=4 years The formula of simple interest formula is…

Q: Suppose you see a car with a price of $12,000 that is advertised at $300 per month for 5 years. What…

A: Given: Price of the car=$12000, Payment=$300 per month, time=5 years.

Q: The Keller’s discovered that they could reduce their mortgage interest rate from 10% to 4%. The…

A: To find principal and interest, From the given data, Total Amount =$277,000+$3,000=$280,000 Number…

Q: If the average inflation rate is 4%, how long is it until purchasing power is cut in half?

A: We know that, If the rate of inflation averages r per annum over n​ years, the amount A that​ P will…

Q: Matthew wants to set up a sinking fund that will be worth $100,000 after 20 years of monthly…

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Q: If the average annual inflation rate is 3.1%, how long will it take for the CPI index to double? (A…

A: Given: the average annual inflation rate is 3.1% To find: how long it will take for the CPI index to…

Q: An investment will pay 5000 dollars at the beginning of 2001, and 3800 dollars at the beginning of…

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Q: Find the present value of the decreasing annuity necessary to fund a withdrawal of $1,500 per…

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Q: If the inflation rate averages 3%, how much will $1000 purchase in 2 years?

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Q: Your client believes that they will have $2,400,000.00 in a retirement account in 26 years. If the…

A: Given data is: Retirement amount is A=$2,400,000.00 Time (t)=26 years The inflation rate is  r=1.5%…

Q: In problems involving interest, if the payment period of theinterest is quarterly, then interest is…

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Q: Suppose that the total interest that will be paid on a 25-year mortgage from a home loan of $130,000…

A: The loan = $ 130,000Interest is = $ 380,000Total loan and the interest= ( 130,000 + 380,000)= $…

Q: Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. b. How much will…

A: Given that, the loan amount is P=$175,000, interest rate r=4.5%, time n=30 years and due is monthly…

Q: Suppose your salary in 2014 is $30,000. Assuming an annual inflation rate of 2%, what salary do you…

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Q: In five years, P1.8M will be needed to pay for a building renovation. In order to generate this sum,…

A: We will solve this

Q: Find the time it would take for the general level of prices in the economy to double at the average…

A: To use the exponential model with the given data to find the required time

Q: If the price of attending Big Benefits University is $42,000 a year, including tuition, fees, books,…

A: Given the price of attending Big Benefits University is $42,000 a year, including tuition, fees,…

Q: You buy a house for $250,000, make a 20% down payment, and take out at 30-year mortgage at an annual…

A: Here, House price= $250,000 Down payment= 20% Effective interest rate= 4%

Q: A financial institution offers you a one-year certificate of deposit with an interest rate of 5…

A: Deriving from the Fisher equation, we get that real interest rate equals the nominal interest rate…

Q: At what simple interest rate per annum will ₱20,000 accumulate to ₱25,000 in 3 years?

A: Solution:-

Q: Suppose your salary in 2015 is $60,000. Assuming an annual inflation rate of 3%, what salary do you…

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Q: Find the time it would take for the general level of prices in the economy to double at an average…

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Q: What would be the selling price of a 10-year bond with a face value of P100,000, interest at 20%…

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Q: 7. At what simple interest rate per annum will P20,000 accumulate to P25,000 in 3 years?

A: Note: We will answer the first question only as the exact one is not specified. Please resubmit the…

Q: Your parents are considering a 30 year $100,000 mortgage that charges 0.5% interest each…

A: Given  P= 100000 r= 0.5% n = 360

Q: At what rate is the account growing?

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Q: Suppose your salary in 2015 is $50,000. Assuming an annual inflation rate of 6%, what salary do you…

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Q: If you owe $2000 on a credit card with 18% annual interest compounded monthly, how i) much money…

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Q: If a certain present value P is amortized into 10 equal payments, then the future worth F will…

A: I am going to solve the given problem by using some simple calculus to get the required result of…

Q: Suppose Billy is carrying forward a $1900 tuition balance from the previous month. His annual…

A: Billy is carrying forward a$1900 tution balance from the previous month. Annual interest rate of…

Q: Suppose your salary in 2014 is $30,000. Assuming an annual inflation rate of 6%, what salary do you…

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Q: If the inflation rate is 4.85% compounded annually, how long will it take for prices to double?

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Q: What is the total amount of money that you will owe at the end of 4 years if you borrow $8500 for 4…

A: What is the total amount of money that you will owe at the end of 4 years if you borrow $8500 for 4…

Q: Suppose your salary in 2012 is $30,000. Assuming an annual inflation rate of 6%, what salary do you…

A: Consider the provided information, Suppose your salary in 2012 is $30,000. Assuming an annual…

Q: if changing market condition cause a company earning 8000000 in 2005 to project a loss of 2 percent…

A: Given that, the earning in 2005 is 80,00,000 and each of the next 5 year the loss is 2% of its…

Q: What is the total amount of money that you will owe at the end of 3 years if you borrow $3100 for 3…

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Q: A factory equipment has an initial cost of P200,000.00. Its salvage value after ten years is…

A: Please check step 2 for the solution.

Q: A sum of $20,000 is used to buy a deferred perpetuity-due that pays $2,100 every year for the first…

A: Solution

Q: If the annual rate of inflation is 4%, find the price of a good at the end of a year if its price at…

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Q: If the annual rate of inflation is 4%, find the price of a good at the end of a year if its price at…

A: the price at the beginning of the year $25 the rate of inflation is 4% the price at  the end of the…

Q: Assume that cost of a gallon of milk is $3.00. With continious compounding, find the time it would…

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Q: Consider two options for purchasing a Honda Fit LX: one is a brand new 2020 model with a…

A: Here two cases are there  case-I of taking new bike case-II of taking two year old bike with less…

Q: Suppose your salary in 2014 is $75,000 at the annual inflation rate is 6% what salary do you need to…

A: Given, Salary in 2014 = 75000 Inflation = 6%