How much will you pay for a $10,000 automobile in 20 years if the inflation rate averages 3 percent per year for 20 years?
Answer to relevant QuestionsAt the beginning of each year, you deposit the following into a growth mutual fund that earns 6 percent per year: How much should the fund be worth at the end of 5 years? Carrie Haute buys a fast food restaurant for $500,000. She is very successful and sells the business six years later for $1,375,000. What is Carrie’s internal rate of return? Hy Potenuse bought a $10,000 Treasury bill at 0.115 percent discount for 13 weeks (91 days). a. How much does Hy pay for the bill? b. What is the effective rate of interest? Describe situations in which you have an integration of future lump sums and streams of equal and unequal payments. EZ Leifer plans to retire at the age of 65 and believes he will live to be 90. EZ wants to receive an annual retirement payment of $50,000 at the beginning of each year. He sets up a retirement account that is estimated to ...
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