4- Suppose the price of a car is 400,000 TL now. If the inflation rate is 8% per year, how much would the price be after 3 years and if you invest 325,000 TL now to the bank at the market rate of 15%, would you be able to buy the tar? 503,885 TL; Can Buy 205% b) O 490,017 TL; Cannot Buy 490,017 TL; Can Buy 106,460 TL; Cannot Buy d) 503,885 TL; Cannot Buy Leave blank

4- Suppose the price of a car is 400,000 TL now. If the inflation rate is 8% per year, how much would the price be after 3 years and if you invest 325,000 TL now to the bank at the market rate of 15%, would you be able to buy the tar? 503,885 TL; Can Buy 205% b) O 490,017 TL; Cannot Buy 490,017 TL; Can Buy 106,460 TL; Cannot Buy d) 503,885 TL; Cannot Buy Leave blank

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose you start saving for retirement when you are 26 years old. You invest $5,000 the first year and increase this amount by 3% each year to match inflation for a total of 20 years. The interest rate is 9% per year. 1. How much will you have in account immediately after making the last deposit at age 45. OA. $56,478 O B. $316,525 O C. $307,734 O D. $617,544 2. How much will you have, if the interest rate was only 3% per year (instead of 9%)? OA. $180,611 OB. $168,704 C. $97,087 O D. $175,351
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Suppose you start saving for retirement when you are 31 years old. You invest $5,200 the first year and increase this amount by 4% each year to match inflation for a total of 25 years. The interest rate is 9% per year. 1. How much will you have in account immediately after making the last deposit at age 55 OA. $1,174,047 OB. $71,848 OC. $578,420 O D. $619,553 www 2. How much will you have, if the interest rate was only 4% per year (instead of 9%)? OA. $125,000 B. $303,117 OC. $333,230 OD. $346,559
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