Q: Find the cost of each item in 7 years, assuming an inflation rate of 8% (compounded continuously).…
A: Inflation rate (r) = 8% Mathematics constant (e) = 2.7183 (Always) Period (t) = 7 Years Therefore…
Q: How many years will it take for something costing $61 today to cost $91 if inflation averages 1% per…
A: Using excel nper function
Q: The current minimum wage is P400 per day. If minimum wage is scheduled to be adjusted every 2 years…
A: The minimum wage is the least amount of wage which is guaranteed by the law enforceable in that…
Q: ind the cost of the monthly rent for a two-bedroom apartment in 30 years, assuming an inflation rate…
A: Using excel exponential funtion Future value = present value * e^(inflation * time)
Q: The real worth of P5000 investment is calculated at P6,445.71 five years from now, What is the…
A: First, let's calculate the nominal interest rate compounded annually. Let that interest rate be r.…
Q: What is the effective annual rate of interest if $1000.00 grows to $1400.00 in two years compounded…
A: Introduction Effective annual rate of interest Effective annual interest rate refers to the form…
Q: Find the cost of each item in 7 years, assuming an inflation rate of 8% (compounded continuously).…
A: cost in 7 years = current cost * e^(inflation * time)
Q: A designer bag is worth P 2 million. If inflation is at rate of 5%, what will be the cost of the bag…
A: Inflation rate is a value at which the value of a product increases with the time. This follows the…
Q: f you wish to save $875,000 in three years, how much would you need to deposit at the start of each…
A: Principal amount invested to save $ 875000 is $ $ 744,941 so to start depositing at the beginning of…
Q: using
A: Introduction: Purchasing power can be defined as the currency's value that would be expressed in…
Q: what would be the present value of $10,000 in the future?
A: Time value of money (TVM) means that the amount of money received in the present period will have…
Q: If you borrow $5000 at an APR of r (as a decimal) from a lending institution that compounds interest…
A: Interest rate is the proportion of amount loaned on which a lender charger as interest to the…
Q: Which one is the approximate periodic interest rate % on a Treasury bill that you purchase for 4,908…
A: Future Value = present Value * (1+ rate * time)
Q: Find the discount rate if P10,000 is the present value of P10,500 which is due at the end of 4…
A: Future value = P 10500 Present value = P 10000 n = 4 months = 1/3 years
Q: n annuity pays $1000 per year for 10 years. Inflation is 6 percent per year. ) If the real MARR is 8…
A: Real interest rate is reduced due to inflation but the actual rate is much larger.
Q: The tag price of a certain commodity is payable in 100 days but if paid in 30 days there will be a…
A: Generally, a discount is offered to make earlier payments since the preference is to receive the…
Q: 11% (compounded continuously). (Round your answers to the nearest cent.) (a) phone bill, $40 $
A: In compounding continuously required the exponential form of interest rate.
Q: A bank deposit of P10,000 earns 3.5% pa compounded quarterly. If inflation is at 5% per year, what…
A: Future value can be referred to as the value of an underlying asset or security at a future date.…
Q: How much would be required today to purchase an item that increased in cost by exactly the inflation…
A: Nominal cashflow can be defined as the cashflow after taking account of inflation. Real cash flow is…
Q: Find the cost of each item in 11 years, assuming an inflation rate of 11% (compounded continuously).…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: An item presently costs P2,000. If inflation is at the rate of 8% per year, what will be the cost of…
A: Please see the next step for the solution
Q: A company is considering buying a CNCmachine. In today’s dollars, it is estimated that…
A: The inflation rate refers to the rate at which the value of the currency decreases over time and the…
Q: Your aunt's $10,000 investment earned a nominal 7% last year. If the inflation rate was 3.75%, what…
A: Nominal rate (r) = 7% Inflation rate (i) = 3.75%
Q: but in 4 years, the cost will b mpany sets aside $8 million will the inflation rate have to unt of…
A: Inflation rate can be calculated usning below formula Inflation rate = (Current value - Base value)…
Q: Find the cost of the monthly rent for a two-bedroom apartment in 30 years, assuming an inflation…
A: Future Value = Present Value * e^(r*t)Where,r = rate of interest i.e. 3%t = time i.e. 30 years
Q: Find the cost of each item in 10 years, assuming an inflation rate of 7% (compounded continuously).…
A: ACCORDING TO THE RULE, WE WILL ONLY ANSWER THE FIRST THREE SUBPARTS, FOR THE REMAINING SUBPARTS,…
Q: If inflation has been running at 2.85% per year and a new car costs $31,400 today, what would it…
A: Rate of inflation per year is 2.85% Cost of Car today "Future Value" is $31,400 Time period is 3…
Q: If $0,000 per quarter is invested in an account that eams a nominal annual interest rate of 9%…
A: The amount in the account at the end of the 6 years is the future value. The nominal annual rate…
Q: If P dollars is borrowed at a rate or r per year to be paid back in t years, the monthly payment…
A: The amount borrowed as a loan needs to be repaid back to the lender along with the interest.…
Q: The present value of P 14,000.00 has a true discount of P 14,700.00 in 7 years. How much is the rate…
A: Future value of amount is computed as sum of present value and true discount.
Q: 1. AP 50,000 is invested at a rate of 10% for 10 years with an average annual inflation rate of 5%.…
A: The maturity amount of the investment will be equal to the future value of P 50,000 invested at 10%…
Q: Find the cost of the monthly rent for a two-bedroom apartment in 30 years, assuming an inflation…
A: The inflation rate refers to the rate at which the value of the currency decreases over time and the…
Q: Find the cost of each item in 12 years, assuming an inflation rate of 11% (compounded continuously).…
A: cost of item will be future value of current cost and future value of compounded continuously is F…
Q: In year zero, you invest P10,000 in a 15% security for 5 years. During that time, the average annual…
A: Information provided in the given question: r = real rate of interest = (interest on the security -…
Q: The average cost of a certain model car was $22,000 ten years ago. This year the average cost is…
A: Expected Return: The expected return is the minimum required rate of return which an investor…
Q: You have borrowed $60,000 at an interest rate of10.5%. Equal payments will be made over a…
A: A series of fixed payments that are paid or received at an equal time interval is term as the…
Q: A given item now costs of ₱2,000. The cost of this item in 2 years time is ₱2,247.00. The inflation…
A: Use the Excel RATE function with the following inputs to determine the annual rate of inflation:…
Q: What is the value today of $1,600 per year, at a discount rate of 10 percent, if the first payment…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
Q: y is equivalent to receiving $10,000 three years from today, if interest is compounded quarterly at…
A: The present value of future money would give the amount of money that is equivalent today…
Q: With an annual inflation rate of 1.57%, how much did an item that now costs $5700 cost 4 years…
A: Inflation rate is 1.57% Current Cost of Item is $5700 Time period is 4 years To Find: Cost of an…
Q: To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9720. What annual…
A: future value = $10000 Mature time = 6 months or 6/12 Principal = $9720 interest amount = future…
Q: How much can the manufacturer of superconducting magnetic energy storage systems afford to spend now…
A: The required amount is the present of the cash flow at the end of 4 years.
Q: What is the value today of $4,800 per year, at a discount rate of 8 percent, if the first payment is…
A: The formula to compute present value of annuity as follows: Present value of annuity=C×1-1+r-nr
Q: If the inflation rate is 6% per year, how many (future) dollars will be required 10 years from now…
A: Given:Inflation rate is 6% per yearTo compute:Future dollars which is required 10 years from now to…
Q: The future amount of $200,000 for a period of 5 years is equal to $391,886.33, considering money is…
A: according to time value of money, future value = present value×1+rateyears
With an annual inflation rate of 1.45%, how much did an item that costs $8000 now cost 3 years prior? Round your answer to the nearest cent.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?With an annual inflation rate of 1.38%, how much did an item that now costs $200 cost 3 years prior? An item that currently costs $200 would have cost $enter your response here ... 3 years ago. (Round to the nearest cent as needed.)An item presently costs P2,000. If inflation is at the rate of 8% per year, what will be the cost of the item in three years?
- A given item now costs of ₱2,000. The cost of this item in 2years time is ₱2,247.00. The inflation rate per year is __.Calculate the purchasing power of $80,000 in 15 years using an annual inflation rate of 6%. Round to the nearest cent.Suppose that you borrow $60,000 at 9% compounded monthly over five years. Knowing that the 9% represents the market interest rate, you compute the monthly payment in actual dollars as $1245.51. If the average monthly general inflation rate is expected to be 0.25%, determine the equivalent equal monthly payment series in constant dollars.(a) $1159(b) $1375(c) $1405(d) $1415
- Ten years ago, an item cost Php2,500. The rate of inflation for the first 4 years was 4%, during the next 3 years 6% and for the last 3 years 9%. Assuming that the increase in price were due to inflation alone, what is the average inflation rate during the 10 years?Find the cost of each item in 11 years, assuming an inflation rate of 11% (compounded continuously). (Round your answers to the nearest cent.) (a) phone bill, $32$ (b) pair of shoes, $62$ (c) new suit, $395$ (d) monthly rent, $650The average cost of a certain model car was $22,000 ten years ago. This year the average cost is $35,000. (a) Calculate the average monthly inflation rate (fm) for this model. (b) Given the monthly rate fm, what is the effective annual rate, f, of inflation for this model? (c) Estimate what these will sell for 10 years from now, expressed in today’s dollars.
- An investor lends $10,000 today, to be repaid in a lump sum at the end of10 years with interest at 10% (= im) compounded annually.What is the real rate of return, assuming that the general price inflation rate is 8% annually?A holiday package is valued at $15000 today. If inflation averages 2% per year, calculate the value of the holiday package indexed for inflation over 4 years. (deals with sequences and series)(a) Calculate the perpetual equivalent annual worth in future dollars for years 1 through ∞ for income of $50,000 now and $5000 per year thereafter. Assume the market interest rate is 8% per year and inflation averages 4% per year. All amounts are quoted as future dollars. (b) If the amounts had been quoted in CV dollars, what is the annual worth in future dollars?
