If the average college graduate makes $33,000 moreevery year than the average high school graduate,what is the cumulative marginal benefit of a collegeeducation if the average college graduate works for40 years, assuming a 3% inflation rate?Options:a) $762,797.48b) $1,320,000c) $1,100,000d) $2,488,241.57e) $358,824.57Which formula would you use to solve this equation?Options:a) PVAb) FVAc) PVPd) PVe) No formula needed

To find the cumulative marginal benefit of a college education, given that the average college…

Answered: If the average college graduate makes…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The price of 1 gallon of organic fresh milk was $3.5 four years back from now. Today one gallon of organic fresh milk costs 6$. The average inflation rate of milk during the past 4 years is?
An engineer who is now 65 years old began planning for retirement 40 years ago. At thattime, he thought that if he had $1 million when he retired, he wouldhave more than enoughmoney to live his remaining life in luxury. Assume the inflation rate over the 40-year timeperiod averaged a constant 3.7% per year.a) What is the CV purchasing power of his $1million at age 65? (Hint: Use the day he started 40 years ago as the base year.)b) How manyfuture dollars should he have accumulated over the 40 years to have a CV purchasing powerequal to $1.3 million at his current age of 65?
MetroKlean LLC, a hazardous waste soil cleaning company, borrowed $2.5 million for 5 years to finance start-up costs for a new project involving site reclamation. The company expects to earn a real rate of return of 20% per year. The average inflation rate is 5% per year. a. Determine the capital recovery required each year with inflation considered. b. Determine the capital recovery if the company is satisfied with accumulating $2.5 million at the end of the 5 years with inflation considered. c. Determine the capital recovery in part ( b ) without considering inflation.
Inflation from one year to the next was 4.0% as measured by consumer price index (CPI). (a) Find the increase in cost of goods and services of a Family with an annual income( after-tax) and budget of $45000.00 due to inflation. (b) Find the cost of goods and services of this Family next year If this Family receives only 2.0% after-tax increase in pay for the year find: (c) The after-tax increase in income of this family (d) The Family's new after-tax income (e) The loss in purchasing power of this family due to inflation.
Today you borrowed $90,000 from a bank at an interest rate of 10.25%, compounded monthly. You are supposed to repay the loan and its interest charges in equal monthly payments over a 15-year period, with the first payment in a month from now. The estimated annual inflation rate is 6%, compounded monthly.(a) What is the amount of your monthly payments?(b) What is the bank's real effective annual rate of return on this deal after taking inflation into account?
Assuming that the inflation rate from 2018 through 2020 is 6% per year: a) What would be the real value of a $55,000 income in each of the three years? b) What does the real income computed for 2019 mean?
Time Price per Unit Units Produced 2007 2008 2009 2010 Blueberries 8. S2 S2. $2.1 $2.4 Pineapples S2 $2.5 $2.5 $3 Cheese S2.5 S3 $41 $3.5 If 2009 is the base year, the inflation rate between 2009 and 2010 is Select one: Oa. 16.1%% Ob 11.2% C-5.8% d. 4.9% here to search
A couple wants to save for their daughter’s college expenses. The daughter will enter college eight years from now and will need $40,000, $41,000, $42,000 and $43,000 in actual dollars over four college years. Assume that these college payments will be made at the beginning of the school year. The future general inflation rate is estimated to be 6% per year and the annual inflation-free interest rate is 5%. What is the equal amount, in actual dollars, the couple must save each year until their daughter goes to college? A. $11,945 B. $12,142 C. $12,538 D. $11,838
Assume you make $140,000 a year. The rate of inflation in the last year was 15%. What would your salary need to be in order to compensate for inflation? Question 28 options: a) $161,000 b) $169,000 c) $155,000 d) $145,000
14.46. Well-managed companies set aside money to pay for emergencies that inevitably arise in the course of doing business. A commercial solid-waste recycling and disposal company in Mexico City puts 0.10% of its income after-tax income into such an account. (a) How much will the company have after 7 years if after-tax income averages $16.4 million per year and inflation and market interest rates are 4% per year and 9% per year, respectively? (b) What will be the buying power of that amount in today's dollars if the inflation rate is 4% per year?
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If the Consumer Price Index rises from 170 in a year to 180 in the following year, the rate of inflation during that year was: Group of answer choices A) 5.88% B) 5.55% C) 10% D) 94.44%

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