Problem3. The rate of inflation is each year is 4%. What will be the purchasing power ofPhp1000 after 20 years?

Inflation can be defined rise in prices, calculated as percentage, over a period of time. Higher the…

Answered: Problem3. The rate of inflation is each…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Required information As indicated, some of the cash flows are expressed in future (then-current) dollars and others in current-value (today's) dollars. Use a real interest rate of 10% per year and an inflation rate of 6% per year. Year 10 3 4 Cash Flow, $ 19,000 38,500 22,000 28,500 Then-current Then-current Today's NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. 17 Expressed As Today's Find the present worth of the estimated cash flows. The present worth of the estimated cash flows is $
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.
If an item costs $200.00 today and the inflation rate is 3%, what will the price be in 10 years?
A software company’s labor requirements currently cost $350,000/year. The labor hour requirements are expected to increase by 10% per year over the next five years. If inflation is 4%, determine the labor costs after 5 years using: a. Then-current dollars. b. Constant-worth dollars.
(Year 1) (Year 2) Restaurant Visits 5 units $20 Each 50 units $35 Each N 95 Masks 250 $5 Each 2 units $1 Each Flights 4 units $200 Each 8 units $400 Each What is the inflation rate between year 1 and year 2?
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You just graduated from college and landed your first "real" job, which pays $42,000 a year. In 19 years how much will you need to earn per year to maintain the same purchasing power if inflation is 1.50% per year? Your Answer:
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
If inflation has been running at 2.2% per year and a washing machine costs $460 today, what would it hace cost three years ago? What is the interest rate per period? i=
A bicycle tire company performed a web-based study of a popular tire retail price over time. The study indicated that price is set at $16.00 per tire, it was expected to increase to $19.00 over the next 5 years. a. Determine the annual rate of inflation over 5 years to increase the price from $16.00 to $19.00. b. Determine the market interest rate that must be used in economic equivalence computations if inflation is considered and real 8% per year interest rate is expected.
John bought his car 3 years ago worth 230,000, his friend Joshua bought the same model this year costing 320,000. Compute for the inflation rate. Rate: % (2 decimal places)
Henrique is a baseball fan and attends several games per season. His expenses per season are listed in the table below: |Year 1 |Year 2 5 Baseball Tickets Jersey Food Transport $500 $600 |$100 $150 $50 |$120 $150 $80 Calculate the inflation rate for Henrique's baseball season between year 1 and 2. 18.5% O0.18% 15.8% O1.6%

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Problem3. The rate of inflation is each year is 4%. What will be the purchasing power of Php1000 after 20 years?