I need answer of this question general accounting If you currently earn $50,000 and inflation continues at 4percent for 10 years, how much must you make to maintainyour purchasing power?

CalculationA=P(1+r%)^nhere ,As per given dataP(Present value ) = $50,000r ( rate of interest) = 4%n…

Answered: If you currently earn $50,000 and…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 34P

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Similar questions

You plan to retire in 30 years and want to accumulate enough by then to provide yourself with $30,000 a year for 15 years.a. If the interest rate is 10%, how much must you accumulate by the time you retire? How much must you save each year until retirement in order to finance your retirement consumption?b. Now you remember that the annual inflation rate is 4%. If a loaf of bread costs $1 today, what will it cost by the time you retire?c. You really want to consume $30,000 a year in real dollars during retirement and wish to save an equal real amount each year until then. What is the real amount of savings that you need to accumulate by the time you retire?d. Calculate the required preretirement real annual savings necessary to meet your consumption goals.e. What is the nominal value of the amount you need to save during the first year? (Assume thesavings are put aside at the end of each year.) What is the nominal value of the amount you need to save during the 30th year?
Assume that you want to retire 30 years from now with an amount of money that will have the same value (purchasing power) as $3 million today. If you believe the inflation rate will average 4.8% per year, determine the amount of future dollars you will need. The amount of future dollars you will need is $ . (Enter your answer in dollars and not in millions of dollars.)
If you are considering the purchase of a consol that pays $60 per year forever, and the rate of interest you want to earn is 10% per year, how much money should you pay for the consol?
If you deposit $100 today and $200 in two years in an account that earns 10% annual interest, how much would you have after 10 years? * I assume the question to be simple interest?
If you invest at 1.59% APY, how many years will it take to turn $1 into $9?
If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%
How much must be invested now to receive $30,000 for 10 years if the first $30.000 is received one year from now and the rate is 8%?
How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
How much will you need to invest today at 10% to have $10,000 six years from today?
You are offered $90000 today or $380000 in 10 years. Assuming that you can earn 15 percent on your money, which should you choose? If you are offered $380000 in 10 years and you can earn 15 percent on your money, what is the present value of $380006?
How much do you need to save each year for 30 years in order to have $775,000, assuming you are investing the money in an account that earns 8%? How much of the $750,000 comes from principal (you’re out of pocket costs)?

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If you currently earn $50,000 and inflation continues at 4 percent for 10 years, how much must you make to maintain your purchasing power?