Inflation is expected to average 4% for the long term and Mr. Smith earned $74,000 this year, how much must he earn in 20 years just to keep up with inflation and maintain the balance between his income and his increasing expenditures?
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a. Inflation is expected to average 4% for the long term and Mr. Smith earned $74,000 this year, how much must he earn in 20 years just to keep up with inflation and maintain the balance between his income and his increasing expenditures?
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- Inflation is expected to be 4% in the coming year. If Mr. Gonzo earned 37,000 this year how much must he earn in the following year to keep up with inflation and maintain a balance between his income and his increasing Expenditures.You choose to invest $2,985 income tax refund check (rather than spend it) in an account earning 5% compounded annually. How much will the account be worth in 30 years?As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in the first year, and then you expect your income to increase by 10,000 each year for the next 6 years. At the interest rate 10% per year, what is the accumulated amount after 6 years? a. 1,714,683 b. 524,456 c. 807,723 d 77,156
- William's son starts college in 11 years. He estimates the current deficit for his college education funds is $65,009. Assume that the after-tax rate of return that William is able to earn from his investment is 9.77 percent annually. He is going to invest additional amounts every month at the beginning of the period for 6 years. Compute the monthly beginning of the periodic payment that is necessary to fund the current deficit. (Please use monthly compounding, not simplifying average calculations)A university graduate earns a starting salary of $50,000 per year, and expects to receive a 5% increase in salary in each of the next 4 years. If the inflation rate is 5% during the 4 years, what will be her real income in terms of today’s dollars at the end of 4 years? a. $55,987.32 b. $60,000.00 c. unchanged, $50,000 d. $63,123.85As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in the first year, and then you expect your income to increase by 10,000 each year for the next 6 years. At the interest rate 10% per year, what is the accumulated amount after 6 years? A.Php 1,714,683 B.Php 967,893 C.Php 524,456 D.Php 807,723
- Mark saves a fixed percentage of his salary throughout each year. This year he saved $1500. For the next 5 years, he expects his salary to increase at an 8% annual rate, and he plans to increase his savings at the same 8% annual rate. He invests his money evenly twice a year in the stock market. There thus will be six midyear investments and six end of year investments. Solve the problem by using the geometric gradient factor. 2. How much will the investment be worth at the end of the six years if they increase in the stock market at a 8% annual rate? Select one: a. $12,911 b. $13,299 c. $13,224 d. $13,512A family spends $40,000 on living expenses. With an annual inflation rate of 3 percent, they can expect to spend approximately _____________blank in one year.Jeffery Johnson is saving $1,450,000 per year in a savings account that is paying annual compound interest of 6%. He intends to continue this for three years after which he will move it to JMMB’s long term fund which pays interest of 8% per annum compounded semi-annually. i. How much would he be able to transfer to JMMB after 3 years? ii. How much money will he have at the end of 8 years from today?
- Mike Gordon wishes to have $80,000 in five years. If he can earn annual interest of 2%, how much must he invest today? $42,170< $72,480 $76,080 $88,320USE EXCEL TO SOLVE THIS PROBLEM AND SHOW THE FORMULA! Jake Mai deposited ¥300,000 in a bank account earning 9 percent per annum. How much interest will he earn in the fourth year? How much of the total will be simple interest and how much will be the result of compound interest?Katie recently retired and met with her financial planner. She arranged to receive $45,000 the first year. Because of inflation each year she will get $580 more than she received the previous year. A. What income will she receive in her 11th year of retirement? B. How much money will she have received in total during her first 11 years of retirement?