How much will you need 20 years from now to have the purchasing power of $100 today

Question:

How much will you need 20 years from now to have the purchasing power of $100 today if the (compound annual) rate of inflation during the period is:
a. 2%?
b. 3%?
c. 4%?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Business Mathematics In Canada

ISBN: 978-0070009899

7th edition

Authors: Ernest Jerome

See More Books

Question Posted: Jan 20, 2016 07:25 AM

See More Questions

You plan to retire in exactly 20 years. Your goal is to create a fund that will allow you to receive $20,000 at the end of each year for the 30 years between retirement and death (a psychic told you...
You were just notified that you will receive $100,000 in 2 months from the estate of a deceased relative. You want to invest this money in safe, interest-bearing instruments, so you decide to...
If you need $20,000 in 12 years, how much will you need to deposit today if you can earn 9 percent per year compounded continuously?
The Carter Caterer Company must have the following number of clean napkins available at the beginning of each of the next four days: day 1, 1500; day 2, 1200; day 3, 1800; day 4, 600. After being...
On January 1, 2006, Pabst Company acquired 80% of Secor Companys common stock and 30% of Secor Companys 10% preferred stock. Pabst Company paid $680,000 for the common stock and $135,000 for the...
In Exercises 1-2 find the output of the given circuit. 1. 2.
Ted is traveling on his railroad car (length 25 m as measured by Ted) at a speed of 0.95c. Alice arranges for two small explosions to occur on the ground next to the ends of the railroad car (Fig....
Production workers for Soloman Manufacturing Company provided 3,000 hours of labor in January and 2,000 hours in February. The company, whose operation is labor intensive, expects to use 40,000 hours...
Last year Rocco Corporation's sales were $725 million. If sales grow at 6% per year, how largee (in millions) will they be 5 years later?
Consider Table 6-3, Network Diagram Data for a Large Project. All duration estimates or estimated times are in weeks; and the network proceeds from Node 1 to Node 8. a. Draw an AOA network diagram...
Using the information given in Problem 20, how much would have to be initially invested in each GIC to have a maturity value of $20,000?
How much money was needed 15 years ago to have the purchasing power of $1000 today if the (compound annual) rate of inflation has been: a. 2%? b. 4%?
Over the years, attendance at the International Tele communications Conference in Brussels, hosted annually by the five largest firms in the telecommunications industry, has followed an approximately...
Noeleen AutoMall, Ltd. recently completed an initial public offering(IPO) for$23,000,000 by listing its common shares on the New York Stock Exchange. Prior to itsIPO, Noeleen was a privately held...
Process Costing- increased units, FIFO method Answer in good form 25 26 Illustrative Problem-Cost of Production Report using Treatment by Neglect Dept 1-100% of materials are added at the beginning....
Write a C++ program that prompts the user to enter a letter and encrypt it using the following method: if the letter is an upper-case letter the program replaces the letter by the 7th letter in the...
Turn this information into an excel sheets with the excel formulas being shown P12.4 (LO 1) (Payroll Tax Entries) The following is a payroll sheet for Otis Imports for the month of September 2025....
What is the major factor preventing women of the Indian diaspora from engaging in elaborate rituals? Group of answer choices Lack of motivation or devotion Because rituals are tied to a place and...
Every weekend more than 500 different vendors set up at the local farmers market, selling a variety of items from homemade prepared foods to fresh produce. Yolanda rents a booth each weekend at the...
If M = 7, s = 2, and X = 9.5, what is z?
Misterio Company uses a standard costing system. During the past quarter, the following variances were computed: Misterio applies variable overhead using a standard rate of $2 per direct labor hour...
Refer to Problem 12-33. To help pay for the pickup truck the Ogi Corp. obtained a $10,000 loan from the truck dealer, payable in four end-of-year payments of $2500 plus 10% interest on the loan...
The management of a private hospital is considering the installation of an automatic telephone switchboard, which would replace a manual switchboard and eliminate the attendant operator's position....
A contractor has to choose one of the following alternatives in performing earth-moving contracts: (a) Purchase a heavy-duty truck for $13,000. Salvage value is expected to be $3000 at the end of the...
Jennifer purchased a home for $1,000,000 in 2016. She paid $200,000 cash and borrowed the remaining $800,000. This is Jennifer's only residence. Assume that in year 2024, when the home had...
business plan describing company with strengths and weaknesses. Any gaps in plan. Recommendations for improvement of the plan.
You wish to buy a car today for $35,000. You plan to put 10% down and finance the rest at 5.20% p.a. for six years. You will make equal monthly payments of $_______.

How much will you need 20 years from now to have the purchasing power of $100 today

Question:

Step by Step Answer:

After 20 years the cost of goods that cost 100 today will be the ...View the full answer

Business Mathematics In Canada

Students also viewed these Corporate Finance questions