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Suppose your salary in 2016 is $50,000. Assuming an annual inflation rate of 6%, what salary do you need to earn in 2019 in order to have the same
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- 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?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 $ .What is the present value on January 1, 2019, of $10,000 to be received on January 1, 2023, and discounted at 6% compounded quarterly? ____________________________ What is the future value on January 1, 2025, of $20,000 deposited on January 1, 2019, which accumulates interest at 10% compounded annually? ____________________________ What is the interest rate per period and the frequency of compounding per year in each of the following? If needed, round your interest rate answers to two decimal places. Interest RatePer Period Frequency of CompoundingPer Year a. 18% compounded semiannually _______% _______ times b. 16% compounded quarterly _______% _______ times c. 15% compounded monthly _______% _______ times
- 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?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. $ _________e. Suppose you can deposit only $200 each January 1 from 2019 through 2022 (4 years). What interestrate, with annual compounding, must you earn to end up with $1,000 on January 1, 2022?
- Assume that in 2020, a Liberty Seated half dollar issued in 1890 was sold for $197,000. What was the rate of return on this investment?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?Every year, on 1st January, starting in 2020 and ending in 2049 (so 30 payments), you deposit $1,000 into a bank account. What rate of return would you need to earn on the account so that on 31st December 2049, just after that year's interest was paid into the account, you had $50,000 in the account?
- For a present sum of $620,000, determine the annual worth (in then-current dollars) in years 1 through 7 if the market interest rate is 12% per year and the inflation rate is 5% per year.The annual worth is $?What single amount on April 1, 2019, is equivalent to a series of equal, semiannual cash flows of $1500 that starts with a cash flow on January 1, 2017, and ends with a cash flow on January 1, 2027? The interest rate is 14% and compounding is quarterly.Suppose Naboo Manufacturing's sales increase 20% over the next year. Assuming that all asset accounts change proportionately to sales, what will the company be paying in taxes in 2020?
