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- If the CPI was 106 in 2013 and 116 in 2014, the inflation rate in 2014 was: (a) 106%; 20 2020(b) 116%; (c) 9.4%; (d) 16%Engr. De los Santos loans from a lending company an amount of P100,000 with a simple insterst of 20% but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, he has to pay full amount of P100,000. What is the actual rate of interestSuppose you start saving for retirement when you are 45 years old. You invest $6,000 the first year and increase this amount by 3% each year to match inflation. How much money will you have saved after 25 years if the interest rate earned on the retirement account is 8% per year? (a) You will have saved $. (Round to the nearest dollar.) (b) On the other hand, you will have saved $ if the interest rate was 3% instead of the original 8%.
- If the inflation rate is higher than the interest rate, thena. it is no longer possible to earn any amount from an initial capital.b. only if the inflation is within the same period where interest is less, the investor will not earn.c. the amount invested at present time will be equal to the future amount.d. any annual worth computed at any period n (of N total years) will not be equal to the annual worth at n + 1period.A company is planning to invest $500,000 in a new business opportunity. The current inflation rate in the country is 1.3 % per quarter. If the company has the policy of maintaining the purchasing power of their invested dollars and also earn 10% real interest rate per year, (a) to what Future Dollars value the invested $500,000 should grow in 5 years?Find the real amounts (with today as the base year) corresponding to the current amounts shown below for a 4% inflation rate. (a) $400 three years from now (b) $400 three years ago (c) $10 next year (d) $350983 in 10 years from now
- To convert actual (inflated) dollars to constant purchasing power dollars (where n = difference in time between today and purchasing base) that occur at the same point in time, one must: (a) Multiply by (P/F, inflation rate %, n). (b) Multiply by (F/P, inflation rate %, n). (c) Multiply by (P/F, combined rate %, n). (d) Divide by (P/F, real interest rate %, n).?if ivalest Ħ 500 today it will become you * 1000 at Yhe echet of 4:5years. What is the effective rate of interet if it is ompounded querterlyA bicycle tire company performed a web-based study of a popular tire retail price over time. Thestudy indicated that price is set at $16.00 per tire, it was expected to increase to $19.00 over thenext 5 years.a. Determine the annual rate of inflation over 5 years to increase the price from$16.00 to $19.00. b. Determine the market interest rate that must be used in economic equivalencecomputations if inflation is considered and real 8% per year interest rate isexpected.
- If the annual inflation rate is 10% and the annual real interest rate is 20%, what is the annualnominal interest rate?(a) Less than 0%(b) Between 5-15%(c) 30%(d) More than 30%(e) None of the aboveIt is a common practice in lending companies that the interest is deducted at the time money is borrowed. Mr. Anito applied a loan amount of P 50,000 with an interest rate of 16% per year. During the time he received the money, the 16% interest is being deducted and he received only P 42,000. At the end of one year, Mr. Anito has to pay P 50,000. What is the actual rate of interest?Annual U.S. factory sales of consumer electronics goods to dealers from 1990 through 2001 can be modeled as (e) = 0.038ae - 0.495 + 5.698: + 43.6 where outout is measured in bilion dollars and t is the number of years since 1990.t (a) Numerically estimate the derivative of s when -10. (Round your answer to one decimal place) bilian dollars per year (b) Interpret the answer to part (a). At the beginning of year annual U.S. factory sales of consumer electronics goods to dealers were increasing by approximately s billion per year.