Assuming an average inflation rate of 6% during the past 10 years, how much would a car costing P400k noc cost 10 years ago

Q: Ima Luckygirl recently found out that her grandfather had passed away and left her his Rocky…

A: (a) Money is now in the account in actual dollars is calculated as follows. A=P1+rn=50001+0.1075…

Q: You would like to buy a house that is currently on the market at $15,000, but you cannot afford it…

A: The market value (present value) = $15000 Number of years (n ) = 15 years Interest rate = 8%

Q: Krystyna has a long-term consulting contract with an insurance company that guarantees her $24,000…

A: We can calculate the present value of the contract by using the nominal MARR. Nominal MARR can be…

Q: During periods of hyperinflation, prices increase rapidly over short periods of time. One of the…

A: Answer: It is given that the price is being doubled every day. It means the prices are increasing…

Q: A manufacturing company plans to replace an existing production line with a newer and more energy…

A: Annual Savings in year 1  = Energy Saved* Price of energy  = 200,000*0.1  = 20,000 Now value of…

Q: 3. A man deposits P50,000 in a bank account at 6% compounded monthly for 5 years. If the inflation…

A: A rise in the overall prices of goods and services during a given time period is termed as…

Q: A small mechanical consulting company is examining its future cash flow requirements. The president…

A: The formula for calculating purchasing power is given below: Future value = Present value(1+rate of…

Q: A man decided to deposit a certain amount of money on his son's 10th birthday, which will be…

A: FV = 280,000 Bank pay interest rate = 5.5% Rate of inflation = 8.7% n = (25 - 10) = 15 Year Note:-…

Q: machine cost P 20,000 today.  If the inflation is 6% per year and interest is 10% per year, what…

A: The FW of an asset is computed as, FV=PW(1+r)n Here PW is the present worth, r is the rate of…

Q: An engineer who is now 65 years old began planning for retirement 40 years ago. At that time, he…

A: A 65-year-old engineer planned for retirement 40 years ago. He thought when he retired he would have…

Q: If P10k is lend today at 12% compounded annually is to be repaid in one lump sum at the end of 5…

A: A real rate of interest is associate rate of interest that has been adjusted to get rid of the…

Q: If an item costs $200.00 today and the inflation rate is 3%, what will the price be in 10 years?

A: Given: The cost of an item is = $200 The inflation rate is = 3% To Find: The price in 10 years: