1.28 Use economic equivalence to determine the amount of money or value of i that makes the following statements correct. (a) $5000 today is equivalent to $4275 exactly 1 year ago at i = % per year. (b) A car that costs $28,000 today will cost $ a year from now at i = 4% per year. (c) At i = 4% per year, a car that costs $28,000 now, would have cost $

1.28 Use economic equivalence to determine the amount of money or value of i that makes the following statements correct. (a) $5000 today is equivalent to $4275 exactly 1 year ago at i = % per year. (b) A car that costs $28,000 today will cost $ a year from now at i = 4% per year. (c) At i = 4% per year, a car that costs $28,000 now, would have cost $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

(e) Last year, Sheila turned down a job
that paid $75,000 per year. This year,
she accepted one that pays $81,000
per year. The salaries are equivalent
% per year.
at i =

1.28
Use economic equivalence to determine
the amount of money or value of i that
makes the following statements correct.
(a) $5000 today is equivalent to $4275
exactly 1 year ago at i =% per
year.
(b) A car that costs $28,000 today will
a year from now at i =
cost $
4% per year.
(c) At i = 4% per year, a car that costs
$28,000 now, would have cost $
one year ago.

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