Answered: Suppose that you have PhP 10,000 cash…

Suppose that you have PhP 10,000 cash today and invest it at an interest rate of 10% compounded quarterly. How many years will it take you to become a millionaire? A. 46.62 B. 48.32 C. 24.16 D. 35.18

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 1. Suppose two nations, Beta and Gamma, each make aircraft and corn. The main resource in each natio...

A: The cost that depicts the value of the next best alternative when a certain decision is being made i...

Q: . As output increases MC curve initially falls and then rises

A: To find : What happens when output increases.

Q: he policies of OPEC+ have nothing to do with the surge in crude prices, two sources in the group sai...

A: OPEC which is a oil exporting petroleum countries is a Big cartel which make decision about Producti...

Q: Instructions: Fill - up the vacant table. Given is as follows: Week Sales ( $1,000) Four-week Moving...

A: Introduction Sales of 9 week has given. 4 moving average has calculated as = add the sales of previo...

Q: A farmer grows a bushel of wheat and sells it to a Miller for $20.00. The Miller turns the wheat int...

A: (a). GDP is the monetary value of those goods and services that are consumed by the final consumer, ...

Q: nods för disposing of å non-hazardous An environmental engineer is considering three chemical sludge...

A: Answer is given below

Q: The current national unemployment rate in the United States as of January 2022 falls within the boun...

A: The unemployment rate in January 2022 in USA was 4%. The Fed's estimate of natural rate of unemploym...

Q: 9. Which of the following are stages of the business cycle? Select all that apply. A. trough B. peak...

A: Business cycle Business cycles are defined as coordinated cyclical upswings and downswings in broad ...

Q: Use the following information to answer the next question: Consider the following figures that repre...

A: Here, four different graphs are showing markets with externality due to which government provides su...

Q: Show that if a firm is a natural monopoly, a government policy that forces marginal cost pricing wil...

A: Answer: Natural Monopoly: When the cost of providing a good or service is so large (especially fixed...

Q: Suppose the administration of a University that is located a high-crime urban area must decide on a ...

A: The "value of a statistical life" refers to estimations of willingness to pay for small decreases in...

Q: Distinguish between production efficiency and allocative efficiency. Explain why many production pos...

A: Production and allocative efficiency are different concepts and have varied characteristics regardin...

Q: 5. In 2013, the average person’s income in Iceland was $41,000. This is an example of what type of e...

A: Answer: Per capita income/GDP: It refers to the average GDP per person in an economy. Per capita GDP...

Q: Given the (inverse) demand function P = 337 - 19Q, at which value of Q is revenue maximized? Q = 9 Q...

A: Revenue is the product of price and quantity.Revenue = PQ

Q: ne costs Php money is w tic tion at the 6th

A: Given that, Machine Cost: 300,000, Salvage value= 50,000 Life year- 10 years Interest rate is 6% ann...

Q: Suppose there is a decrease in supply in a market where the supply curve slopes upwards and the dema...

A: 4. When there is decrease in quantity supplied and the supply curve slopes upward with respect to pr...

Q: 9. Consider a no-trade-to-free-trade liberalization with a pro-competitive effect and the expected t...

A: Since the question you have posted consists of multiple parts, we will answer the first two parts fo...

Q: Explain the difference between market capitalism, centrally planned capitalism, centrally planned so...

A: The economy is an area where we earn our living. It refers to a system where we perform the major ac...

Q: The first costs of an equipment is P 65,000 and a salvage value of P 3,000 at the end of its 6 – yea...

A: cost of equipment = 65000 salvage = 3000 P time = 6 years Method = sum of year digit method

Q: Country A produces GDP according to the following equation: GDP = 5/K and has a capital stock of 9,2...

A: Introduction Country A produces its GDP according to the following equation = 5 K And the capital st...

Q: Suppose that the University of Alabama and Clemson are making spending decisions for theupcoming yea...

A: Meaning of Decision Theory under Nash Equilibrium: The term decision theory refers to the situatio...

Q: If actual output stays above potential output for some time, then we should expect. to rise and the ...

A: The goods market is in equilibrium where the aggregate demand and aggregate supply are equal to each...

Q: Consider the graph below. What is the firm's profit? MC Y00 ArC 300 DEMR 200 15 20

A: The returns being earned by the business from conducting its operations after taking into considerat...

Q: Policymakers are provided data about the private and social benefits of a good being sold in the mar...

A: An externality can be positive or negative. A positive externality is a benefit received by a third ...

Q: Suppose that the following Cobb-Douglas utility function is given U(X,Y) = X³y/2, Which of the follo...

A: Marginal rate of substitution refers to the ratio of marginal utility of two goods.

Q: Show that a monopolist with one product at the left end point would find it profit maximizing to ser...

Q: what do you mean by CIRCULAR FLOW OF GOODS AND INCOME AMONG PRODUCERS AND HOUSEHOLDS

A: circular flow model Lets understand this concept with an example:- In this circular flow model the...

Q: In the context of the monetary approach to the determination of the exchange rate, what is the effec...

A: A money supply curve is the supply of currency in an economy. The supply of money depends upon the i...

Q: RUE OR FALSE 1. The volume of our money is being regulated by the government and subject to the app...

A: 1. False: The given statement is false because the money supply in the economy is regulated by the c...

Q: 5. The results of the recent Federal Census will have no impact on the amount of revenue a State rec...

A: Answer -

Q: QUESTION 8 Consider the production function F(A,K) = A*In(K), where A = 3 is a constant. What is the...

Q: Suppose First National Bank holds $100 million in assets with an average duration of 4 years, and it...

A: Given duration of assets = 4 Duration of liabilities = 2 Change in interest rate = 4%

Q: Do you think that the taxicab industry in large cities would be subject to significant economies of ...

Q: 1. Unit cost is another name for

A: To find : What is another name for unit cost.

Q: unexpected inflation is better for whom and why? O If you are a lender, because it reduces the value...

A: Inflation is the increase in average price level of goods and services produced in the economy.

Q: If provinces were legally bound to have annually balanced budgets, they would likely: Select one: ha...

A: A balanced budget occurs when revenues are equal to or greater than total expenses.

Q: Which of the following statements is FALSE? high rates of unemployment often have a way of perpetuat...

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and scarcit...

Q: 10) Suppose that the utility function of an individual can be described as U(X,Y) = 4X + 2Y. For thi...

A: Marginal rate of substitution refers to the slope of an indifference curve. Indifference curve shows...

Q: If a competitive firm finds that its average variable cost is decreasing at its current profit maxim...

A: There are many buyers and sellers in the perfectly competitive market. Single firm can not influence...

Q: Suppose that the following utility function is given U(X, Y) = -X¯1+Y¯1. Which of the following corr...

Q: 1. The following model is a simplified version of the multiple regression model used by Biddle and H...

Q: Suppose a consumer has utility function u(r1, r2) = + x. (a) Compute the Marginal Rate of Substituti...

A: (a) MRS = MUx1MUx2 = 12x112x2= x2x1 (b) To find: Optimal bundle: x(p, w) Equating MRS to price rat...

Q: Macroeconomic equilibrium is defined as ___. A. The point at which the supply curve and demand curve...

A: In economics, macroeconomic research is about all the economy at once. Macroeconomic concepts discus...

Q: Suppose that books are a normal good. If consumers get richer what will happen to the price and quan...

A: Normal goods have positive income elasticity of demand, so when the income of consumer rises, the de...

Q: How does SAT performance influence occupational andeconomic achievement?

A: SAT scores have a positive relationship with economic achievement. A higher SAT scores means a high...

Q: In the context of the monetary approach to the determination of the exchange rate, what is the effec...

A: The monetary approach with respect to the exchange rate needs, in the flexible should focus on the d...

Q: In words, Ay = B1AX, is defined as the marginal effect of: a. x on y is constant and is equal to BO....

A: Marginal effect measures the change in dependent variable due to change in independent variable.

Q: 3. Derive tne equations of IS curve, LM Curve, and find equilibrium income and int Trom this IS-LM m...

A: Y=C+I+G C=c0+c1(Y-T) -c2r I=Io+a0Y -ar T=t0+t1Y G=G0 MQ=mY+m0-hr MQ=Mr=M

Q: A. Consider that you're the manager of a competitive firm, KKL INC. with the following short run cos...

A: In short run the firm will try to recover only Variable cost it means their price must equal to the ...

Q: Please explain the relationship between bond market and money market. Explain the process how an inc...

A: When talking about the relationship between bond market and money market, it can be said that these ...

Question

Suppose that you have PhP 10,000 cash today and invest it at an interest rate of 10% compounded quarterly. How many years will it take you to become a millionaire?

A. 46.62

B. 48.32

C. 24.16

D. 35.18

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

If $500 is deposited in a savings account at the beginning of each quarter for10 years and the account earns 8% interest compounded quarterly, what will bethe balance in the account at the end of 10 years?(a) $28,933 (b) $30,201(c) $31,421 (d) $30,805
A company has issued a 20 year bonds, with a face value of $50,000 interest at 8% is paid quarterly. If an investor desires to earn 12% compounded quarterly, what would be the purchase price of the bond? $12, 654.40 $42, 563 $35, 062.60 $ 34, 900.80
You are making semiannual deposits into a fund that pays interest at rate of9% compounded continuously. What is the effective semiannual interest rate?(a) 4.000%(b) 4.708%(c) 4.164%(d)4.175%
4. )A man wishes to have P40,000 in a certain fund at the end of 8 years. How much should he invest in a fund that will pay 6% compounded continuously? ANSWER: 24,751.34
Today, you invest ₱100,000 into a fund that pays 25% interest compounded annually. Three years later, you borrow ₱50,000 from a bank at 20% annual interest and invest in the fund. Two years later, you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal you start taking ₱20,000 per year out of the fund. After five withdrawals, you withdraw the balance in the fund. How much was withdrawn? Note: Draw the cashflow diagram
Today, you invest ₱100,000 into a fund that pays 25% interest compounded annually. Three years later, you borrow ₱50,000 from a bank at 20% annual interest and invest in the fund. Two years later, you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal you start taking ₱20,000 per year out of the fund. After five withdrawals, you withdraw the balance in the fund. How much was withdrawn? Note: Draw the cashflow diagram and solve using the formula of annuities
Suppose Sally’s current salary is $62,000 per year, and she is planning to retire 25 years from now. She anticipates that her annual salary will increase by $1,800 each year. in the first year she will earn $62, 000 in the second year $63, 800 in the third year $65, 600 and so forth.) At the end of each of the next 25 years, she plans to deposit 10% of her salary from that year into a retirement fund that earns 6% interest compounded daily. How much money will be in her account at the time of her retirement?
What uniform annual payment for 30 years is equivalent to spending $10,000 immediately, $10,000 at the end of 10 years, $10,000 at the end of 20 years, and $2,000 a year for 30 years? Assume an interest rate of 8%.
Calculate the price of a zero-coupon bond that matures in 20 years if the market interest rate is 3.8 percent. Assume semiannual compounding. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Suppose you purchased a corporate bond with a 10-year maturity, a $1,000 par value, a 9% coupon rate ($45 interest payment every six months), and semiannual interest payments. Five years after the bonds were purchased, the going rate of interest on new bonds fell to 6% (or 6% compounded semiannually). What is the current market value (P) of the bond (five years after the purchase)?(a) P = $890(b) p = $1,223(c) P = $1,090(d) p = $1,128
Suppose a man purchases a luxury car with an initial down payment of $20,000 and then makes quarterly payments: $2000 at the each of each quarter for six years and $3500 at the end of each quarter for eight more years. Given an interest rate of 6% compounded quarterly, find the present value of the payments and the list price of the luxury car.
Suppose P100, 000 is deposited in an account that earns 8% compound interest that is compounded semi-annually. In how many years will the initial investment triple? a.13.01 years b.14.01 years c.14 years d.13 years As advised by your financial adviser, you started to save P15,000 and deposited it every in the beginning of each month in a bank with 6% interest compounded annually, How much is the total amount after 8 years? (Hint: Future Value of General Annuity Due) a. 4,935,561.09 b. 3,495,561.09 c. 5,493,561.09 d. 9,435,561.09