The price of coal in 2020 is $58 per ton. The annual inflation between 2020 and 2030 is expected to be 5.6%. The price of coal is assumed to escalate at an annual average rate of 7.1% as a result of resource depletion (i.e, this escalation is independent of inflationary effects). What is the price of coal in the year 2030, expressed in 2000 dollars? (your answer must be rounded-off to the nearest dollars per billion joules, i.e., no decimal places)

The price of coal in 2020 is $58 per ton. The annual inflation between 2020 and 2030 is expected to be 5.6%. The price of coal is assumed to escalate at an annual average rate of 7.1% as a result of resource depletion (i.e, this escalation is independent of inflationary effects). What is the price of coal in the year 2030, expressed in 2000 dollars? (your answer must be rounded-off to the nearest dollars per billion joules, i.e., no decimal places)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Darren and Susan want to provide funding for their daughter Jerri, age 10, to attend four years of college, starting at age 18. The current annual cost of tuition is $19,000. Assume inflation of 6% and after-tax earnings of 5%. If the couple wants to have enough life insurance to assure adequate funds for Jerri when she begins college (should Darren die today), approximately what amount of life insurance covering Darren is needed for the college funding? (Round your answer to the nearest dollar.) A)$80,835 B)$83,166 C)$83,958 D)$80,071
The price index was 220 in one year and 238.2 in the next year. What was the inflation rate? a) 8.3 percent b) 108.3 percent C) 4.8 percent c) d) 38.2 percent
Help!!!!
The incredible shrinking $50 bill in 1957 was worth $50, but in 2007 it is worth only $6.58. Solve, a. What was the compounded average annual inflation rate (loss of purchasing power) during this period of time? b. Fifty dollars invested in the stock market in 1957 was worth $1,952 in 2007. In view of your answer to Part (a), what was the annual real interest rate earned on this investment?
Problem 14.044: Calculate the purchasing power with respect to today's dollar You just made an investment in an insurance policy that is guaranteed to pay you $3 million 20 years from now provided you live that long. What will be the purchasing power of that amount with respect to today's dollars if the market interest rate is 8% per year and the inflation rate stays at 4.3% per year over the 20-year period? The purchasing power of this amount is $
Required information In wisely planning for your retirement, you invest $34,000 per year for 20 years into a 401K tax-deferred account. Assume you make a real return of 10% per year when the inflation rate averages 3.3% per year. How many future dollars will you have in the account immediately after your last deposit? You will have $ | future dollars in your account immediately after your last deposit.
Question 7 The price of a product was $0.88 in the year 2008 and $1.28 in the year 2018. What is the average annual inflation rate for this product? 3.82 % 3.68% 3.42 % 3.98 % Question 8 If the CPI for January 2008 is 208.837 and the CPI for December 2018 is 255.539, what is the average annual inflation rate (per year) from Jan 2008 to Dec 2018? (Hint: Calculate monthly inflation rate and then use annual effective interest rate) O 1.65 % ☐ 1.75% O 1.95 % O 1.85 %
Suppose you obtain a 30-year mortgage loan on which you have to pay a 7.0% (fixed) interest rate. Further suppose that you and your lender anticipate inflation will average 2.0% during the life of the loan. Now suppose the post-loan both inflation rate is actually 1.0% per annum. It follows that your real rate of interest is and, ceteris paribus, financially better off as a result of the difference between the anticipated and the unanticipated rate of inflation. O a. 3%, you are O b. 8%, your lender is Oc. 5%, you are O d. 6%, your lender is Next page
Cost of a medical treatment after one year is $100,000. The real discount rate is 5%. The economy has an inflation rate of 6% for next one year. Use the inflation adjusted discount rate to compute the present value of the $100,000.
The Canadian Consumer Price Index (based on a value of 100 in 1971) rose from 97.2 in 1970 to 210.6 in 1980. What was the (equivalent) annual rate of inflation in the decade of the 1970s?
If the consumer price index (CPI) says that inflation equaled 10% last year, then the chained CPI for urban consumers is likely to say that inflation equaled 9.7% last year. a) True b) False
Suppose that the inflation rate during a year is 5 per cent. During that year, you deposited $500 in your bank account and received an annual nominal interest rate of 10 per cent. What is the real purchasing power of your deposit at the end of the year? $500 $550 $525 $523