Answered: Calculate the value of P corresponding…

Calculate the value of P corresponding to the following series, if the effective interest rate applicable to each period is 10%:

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 35P: With in 1 or 2 percentage points, what has the U.S. inflation rate been during the last 20 years?...

See similar textbooks

Related questions

Q: Trevor's starting salary at his new job is $40,000. His company gives a performance raise of 5% each…

Q: Find an expression for the present value of an annuity on which payments are 1 at the end of each…

A: Our goal is to derive an expression for the present value of this annuity, taking into account the…

Q: A man borrowed from a bank under a promissory note that he signed in the amount of P60,000 for a…

A: Here the values given are as follows:- Amount Applied = 60000 Amount Received = 50150 Other fees =…

Q: . Exactly 100 years ago, my greatgrandmother deposited P10450 in a large Philippine Bank as part of…

A: Present value is the value of investment in todays dollar. Future value is the value of investment…

Q: 10. What is the annual interest rate on a 1000 dollars loan in which all interest is paid at the end…

Q: Suppose you have received a credit card offer from a bank that charges interest at 2.4% per month…

A: Effective interest rate is the interest rate catering the compounding periods during a specific time…

Q: Given an interest rate of 12%, how much does one need to invest today to acquire 5,000 pesos…

A: Given information, Interest rate (i): 12% Annual income (A): 5,000 pesos Time period (N): 20 years…

Q: John Doe received the following information in a mailed advertisement: "You could borrow $4,400 for…

A: here by calculating the effective interest we conclude the better opportunity which are as follow-

Q: To make CDs look more attractive as an investment than they really are, some banks advertise that…

A: Simple interest computes interest based only on the initial amount borrowed or invested, while…

Q: 4.Suppose a man receives an initial annual salary of ₱80,000, increasing at the rate of ₱6,000 a…

A: In economics, present value refers to the current value of a future stream of cash flow. Future…

Q: is based on the notion that a dollar paid in the future is less valuable than a dollar paid today.…

A: The present value is the current value of all the future streams of money calculated at a particular…

Q: Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar…

A: The objective of the question is to calculate the present value of two different loans. The first…

Q: Calculate the future value (rounded to the nearest whole number) of monthly deposits of R500, made…

A: Future value can be calculated as follows. Monthly interest rate (i) is 0.0033. Time period is 360.…

Q: EN INTEREST RATE DESIRED INTEREST RATE 6% per week % per quarter % Per month Nominal rate per 6…

A: *Answer: *a year = 52 weeks , hence nominal rate per 6 months = ( 0.186 * 52 ) / 2= 3.64 %…

Q: Assume that $150 invested a year ago will return $170 a year from now. What is the annual interest…

A: Present value(PV) is that value of an amount(A) of money that is worth today. It is less than the…

Q: If XYZ Bank advertises a savings account with an interest rate of 8.5% p.a. compounded weekly, what…

A: Given Interest rate i=8.5% compounded weekly. We have to calculate effective annual interest rate…

Q: What is the definition of internal rate of return (IRR)? If you expect the annual interest rates are…

Q: Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar…

A: The objective of the question is to calculate the present value of two different loans. The present…

Q: It is said that a lump-sum amount of $50,000 at the end of five years is equivalent to an…

Q: Toni received a loan of $200,000 at 10% interest. The interest was deducted from the loan at the…

A: SI=P*R*T/100 where, P-Principal R-rate of interest T-time

Q: In the following cash flows diagram, Determine the value of F that makes the two cash flows diagrams…

A: In economics, present value refers to the current value of a future stream of cash flow. Future…

Q: At what simple interest rate: a) Will $20,000.00 rise to $21,100.00 in one year? b) Will $720,000.00…

A: We have given (a) Present value of money P= $20,000.00 Future value F= 21,100.00 and time = 1 year…

Q: A cash flow at time zero (now) of $14,551 is equivalent to another cash flow that is an EOY annuity…

A: A Cash flow at time zero (but now it is $14,551) is equivalent to another cash flow that is an…

Q: It is likely that airplane tickets will increase 5% in each of the next 4 years. The cost of a plane…

A: The present value of an amount (F) which would be available after t years with interest rate (R) is…

Q: how complete solution (please write eligibly) 1. Find the uniform annual amount that is equivalent…

A: First year’s payment (F) = 500, Gradient (G) = 100 n= 22 payments The annual interest rate is 11%.…

Q: A cash flow at time zero (now) of $7,386 is equivalent to another cash flow that is an EOY annuity…

A: Cash flow:The sum of the total money is represented in the diagram. It represents the magnitude and…

Q: An advertisement of an investment firm states that if you invest ₱500 in their firm today you will…

A: The investment curve refers to the indirect relationship between interest rate and investment. The…

Q: Use graphical approximation techniques to answer the question. When would an ordinary annuity…

A: An ordinary annuity is a series of payments made at the end of each period. The payments are all the…

Q: John Smith deposits 1,200 Pesos at the end of each year that pays 6% interest. How much will Mr.…

A: The formula is: FV=A[(1+r)n-1r] Where,FV = Future Value A = annual depositn = yearsr = Compound…

Question

2. Calculate the value of P corresponding to the following series, if the effective interest rate applicable to each period is 10%:

P = ?
90
1
80
2
70
3
60
50
4 5
40
50
6 7
60
70
89
80
10
90
11

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Given

Step 2

Formula Used

Conclusion

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The number of users of a certain website (in millions) from 2004 through 2011 follows. Year Period Users (Millions) 2004 1. 2005 2 2006 11 2007 4 57 2008 146 2009 6. 359 2010 7 609 2011 846 (a) Construct a time series plot. 900 900 900 - 900 - 800 800 800 - 800 - 700 700 700- 700 - 600 600 600 600 500- 400- 500 500 500- 400 400 400 - 300- 300 300- 300 - 200- 100- 200 200- 200 100- 100- 100 2 4 6. 8 10 4 6 8 10 8 10 2. 4 6 8 10 Period Period Period Period What type of pattern exists? O The time series plot exhibits a downward linear trend. O The time series plot exhibits an upward linear trend. O The time series plot exhibits a downward curvilinear trend. O The time series plot exhibits an upward curvilinear trend. (b) Using Minitab or Excel, develop a quadratic trend equation that can be used to forecast users (in millions). (Round your numerical values to one decimal place.) T = Millions of Users Millions of Users
these are the dataset: Earnings and…
Please assist with the calculation
Sample Population Person Status Allen Unpaid stay-at-home dad. Has not looked for a job in several years Ben College president Allison Part-time welder. Actively looking for full-time work Brittany Self-employed full-time wedding singer Cathy Full-time physician's assistant Calvin Retired finance professor. Last applied for work 10 weeks ago Diane Laid-off fork-lift operator expecting to be recalled David Works for a bicycle store. Age 70 Evelyn Manager of health food store Eli Museum guard. Was not at work last week due to illness Has never been employed. Looked for a job last week Fired from job as an investment banker. Last looked for work three weeks ago Flora Frank Refer to Table 28-1. How many in the sample are in the labor force? a.8 Ob. 11 Oc.9 10 d. 10
Income (Y) Money Supply (X) 116652 42011 120392 43313 124572 44808 132624 49243 139656 50094 148583 52117 150164 54253 153560 56512 157328 59243 161740 60783 168732 65173 176549 66338 182744 68694 190172 72238 191592 74544 195600 77300 201204 80021 204160 83482 212468 85868 214712 87911
6 assignment 2 asimmm222222 Pakistan has been facing unemployment issues for decades now. You are the Minister of Finance and have been given a task to reduce the unemployment rate in Pakistan. What measures will you take and why? What outcome is expected from those actions?
Tract 1 123 2 3 4 Group A Group B 25 50 75 100 25 25 25 25 Calculate the dissimilarly index for this county.
The table below is extracted from Happyland Republic, Bureau of Statistics records for 2019- 2020. Use the information in this table to answer the questions that follow. Base year 2019 Productio Items 2020 Productio Price Price n n Used cloth (units) 4,000 50.00 5,000 60.00 Components used tractor factory production (units) Cloth (units) 1,200.0 8,000 500.00 11,000 8,000 25.00 12,000 30.00 Beef gifts during cultural festival (Kg) Milk (litres) Computers (Units) Printers (Units) Raw materials for car assembling plant (Units) 1,500 2.00 1,700 3.00 5,000 2,000 500.00 500 300.00 4,500 250.00 1.30 7,000 2.50 2,500 600.00 400 355.00 4,450 300.00 i. Calculate Happyland Republic's nominal GDP, real GDP in 2020. Also, calculate the GDP deflator if 2019 is used as the base year. Show your work.
an index decreases from 110 to 105. the percentage change in the index is?
Solve step by step in digital format Microeconomy What is the strong stationarity principle of a time series?
In 2017-18, the Pakistan Bureau of Statistics announced that of all adult Pakistanis, 59,786,200 were employed, 3,613,800 were unemployed, and 58,800,000 were not in the labor force. Use this information to calculate the adult population.
The percentage of workers joining a trade union in Malaysia has been steadily dropping in the last two decades. Explain what could be the possible reasons based on your research findings. Please give 8 point with an elaboration in details with example for each point. 1000words