In 2019, the average salary of petroleum engineers was $98,400. Predict what their salary will be in 2028 if their salary increases only by the inflation rate. Assume the inflation rate over this time period is constant at 3.8% per year. The salary of the petroleum engineers will be $ .
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- In 2019, the average salary of petroleum engineers was $98,400. Predict what their salary will be in 2028 if their salary increases only by the inflation rate. Assume the inflation rate over this time period is constant at 3.8% per year.
The salary of the petroleum engineers will be $ .
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- Suppose your salary in 2018 is $40,000. Assuming an annual inflation rate of 9%, what salary do you need to earn in 2025 in order to have the same purchasing power? (Round your answer to two decimal places.)Assuming that the inflation rate from 2017 through 2019 is 6% per year: a) What would be the real value of a $65,000 income in each of the three years? (Show all work) b) What does the real income for 2019 mean?Massy Store makes a $10,500 investment at Republic Bank Ltd on January 1, 2019. At the end of December 31, 2023, Massy Store is expected to accumulate an amount of $17166.25?i. Calculate the interest rate needed to procure this investment? ii. How long will it take for the initial amount invested to be doubled, given that interest is compounded annually at the rate in (i) above?
- A company's sales in 2019 were $100 million. If sales grow at 9%, what will they be 10 years later, in 2029?A senior executive is offered a buyout package by his company that will pay him a monthly benefit for the next 20 years. Monthly benefits will remain constant within each of the 20 years. At the end of each 12− month period, the monthly benefits will be adjusted upwards to reflect the percentage increase in the CPI(an inflation rate). You are given:What will be the future value on December 31, 2023, of 5 annual $60,000 deposits starting on December 31, 2019, if the amounts earn 8% compounded annually? (Click here to access the PV and FV tables to use with this problem.) Round your answer to two decimal places. $ _________
- Suppose a government is making a series of payments to another government, up to the end of 2039. · The first payment is made on 1 January 2021, and is equal to $700,000; · All subsequent payments are made on the first of each quarter, but increasing at an inflation rate r, of r = 1.5% every 12 months (effective). · That is, the payments on 1 April 2021, 1 July 2021, 1 October 2021 are also $700,000 each, but all payments made in 2022 are $700,000(1+r) each, all payments made in 2023 are $700,000(1+r)2 each, and so on. (a) Assuming an interest rate of 12% per annum (effective), what is the present value of the above payments as at 1 October 2020?In each situation described below, identify the initial payment, the term interest rate, andthe number of compounding periods. An investment of $10000 made in January 2018 at an APR of 5% compounded monthly,and another investment of $20000 made in January 2025 at an APR of 3% compoundedweekly. What is the value of the account in January 2030?A 24-year-old December 2019 graduate has decided he wants the equivalent of $2,500,000 in January 1, 2020 buying power to be available exactly 40 years later on January 1, 2060. He plans to make his first investment of $Z on January 1, 2021 and every year thereafter, with the last payment of $Z on January 1, 2060. He can earn 8% on his money and expects inflation to run 5%. Solve, a. How many actual dollars will there be in his account immediately after his last deposit? b. What is $Z?
- It is now january 1, 2018, and you will need $1,000 on january 1, 2022, in 4 years. if you have only $750 on january 1, 2019, what interest rate, compounded annually for 3 years, must you earn to have $1,000 on january 1, 2022?You intend to work for 30 years before you retire and will save for your retirement during that period with fixed monthly payments invested in the S&P 500 index at the end of each month. During the first 10 years of retirement, you would like to withdraw $5,000 at the end of each month, and during the next 10 years of retirement, you would like to withdraw $6,000 at the end of each month to offset the effects of inflation. How much do you need to save each month if the expected rate of return on the S&P 500 is 8%?A new employee plans to receive 760,000 TL individual retirement bonus when he retires. According to the forecast that this person will retire after 30 years, premium payments will be made at the end of each year and a compound interest rate of 14% will be applied each year; a) What is the premium amount to be deposited at the end of each year b) Draw the cash flow diagram for the transactions. c) Calculate the present value of the 760,000 TL bonus that this person will receive when she retires.
