1 The PH debt as of today amounts 12 trillions. This balloons with an interest rate of 0.16% yearly. Suppose the government requires every earning individual to pay debt by 2030, how much of us would need to pay monthly (annual payment amortized in 12 equal payments), assuming that inflation is 3%, the interest rate is 5.6% compounded daily, and we will start the payment by the end of 2022? The Philippines is estimated to have 110 million people, with the work force around 20%. (Show the cash-flow diagram if possible, and the complete solution NOT the spreadsheet/ excel)

1 The PH debt as of today amounts 12 trillions. This balloons with an interest rate of 0.16% yearly. Suppose the government requires every earning individual to pay debt by 2030, how much of us would need to pay monthly (annual payment amortized in 12 equal payments), assuming that inflation is 3%, the interest rate is 5.6% compounded daily, and we will start the payment by the end of 2022? The Philippines is estimated to have 110 million people, with the work force around 20%. (Show the cash-flow diagram if possible, and the complete solution NOT the spreadsheet/ excel)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 34P: The total price of purchasing a basket of goods in the United Kingdom over four years is: year...

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The total price of purchasing a basket of goods in the United Kingdom over four years is: year 1=940, year 2=970, year 3=1000, and year 4=1070. Calculate two price indices, one using year 1 as the base year (set equal to 100) and the other using year 4 as the base year (set equal to 100). Then, calculate the inflation rate based on the first price index. If you had used the other price index, would you get a different inflation rate? If you are unsure, do the calculation and find out.
If l = 0, what does this imply about the relationshipbetween the nominal interest rate and the inflationrate?
Illustrate how we may convert actual dollars into constant dollars of the base year or vice versa?
A. California has 11.1 million employed people, 6.2 million unemployed people and 7 million people not in the labor force. Compute the labor force, unemployment rate adult population, and labor force participation rate. B. You deposit $1,000 in a bank account that pays a fixed interest rate of 5% per year and it compounds annually. What will your bank account balance be in 50 years?
Please answer fast please arjent help please answer fast please
Suppose you borrow $1,000 of principal that must be repaid t the end of two years, along with interest of 5 percent a year. If the annual inflation rate turns out to be 10 percent, Hint: Future value = Present value x (1 + Growth in prices), where t is the number of years evaluated. Real value of loan repayment Amount of loan x (1 + Real interest rate) Instructions: Round your responses to the nearest whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. What is the real rate of interest on the loan? % b. What is the real value of the principal repayment? c. Who loses, the debtor or the creditor? Debtor O Creditor
Inflation is a general increase in prices and may be measured by the Consumer Price Index (CPI). Use Appendix A to answer the questions. In Year 1 the CPI was 100; 20 years later, it was 229. What was the annual rate of inflation? Round your answer to the nearest whole number. ___________% Nancy and Pam both currently earn $90,000. If the annual rate of inflation is 3 percent, how much must each earn after twelve years to maintain their purchasing power? Round your answer to the nearest dollar.$ ___________ Your parents bought a home for $40,000 in Year 1 and sold it in Year 21 for $220,000. What was the annual rate of price increase over the 20 years? Round your answer to the nearest whole number._____________ %
Only typed answer If the inflation rate is 4% per year and the market interest rate is known to be 13% per year, what is the implied real interest (inflation-free) rate in this inflationary economy? The implied real interest (inflation-free) rate is? (Round to two decimal places)
Assume that Sarah agrees to lend $100 to Sam for one year. Sam agrees to pay Sarah $117 at the end of the year. If inflation over that one year is 8%, what real rate of interest does Sarah earn on her $100?
a1. You learn on the business channel that inflation was about 0.8% last month. Assume this rate is maintained each month for a year. What will the annualized rate be? EXAMPLE: A rate of 0.1% per month represents (1 + 0.001)^12 -1 = 0.0121 or 1.21% annually. a2. Your sales grew 4% last year. EXAMPLE: A 2% growth rate for the year would require 1.02 = (1 + r)^12. Solve this for r: See image ; r = .00165 or .165% per month on average. What average monthly growth rate is needed to give the 4% growth?
4.In 2020, interest rates were 9.2% and the rate of inflation was 11%. What was the realinterest rate in 2020? How would the purchasing power of your savings have changed overthe year?
2. The price of natural gas has been zooming up from $4 per MMBtu on December 31, 2021 to $8 on April 30, 2022. What was the average effective rate of inflation per day over those 120 days? Hint: Your answer when compounded by 120 days should double the price. The nearest answer is: a. 0.5% b. 0.6% c. 0.7% d. 0.8% e. 0.9%