A person just turned 21 years old. If inflation is expected to average 2.4% per year for

Question:

A person just turned 21 years old. If inflation is expected to average 2.4% per year for the next 44 years, how much will $1 today be worth when this person retires at age 65?

(a) $0.055

(b) $0.35

(d) $0.65

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

Step by Step Answer:

Related Book For book-img-for-question

Engineering Economy

ISBN: 978-0133439274

16th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

See More Books

Question Posted: Dec 06, 2018 08:44 AM

See More Questions

It is widely known that the percentage of the American population that has had contact with the criminal justice system has been increasing. For employers, this poses a problem of how and when an...
Many people get ready for retirement by depositing money into a monthly or annual savings plan. a. If $300 per month is deposited in a bank account paying a 6% APR compounded monthly, how much will...
Refer to Example 4-8. If inflation is expected to average 3% per year over the next 60 years, your purchasing power will be less than $1,107,706. a. When f = 3% per year, what is the purchasing power...
Which of the following variables was controlled in Experiment 1? F. Amount of yeast G. Percent of molasses H. Percent of sucrose J. Carbon dioxide levels Experiment 1 Since yeast needs sucrose to...
Medical tests are frequently used to decide whether a person has a particular illness. The sensitivity of a test is the probability that a person having the illness will test positive; the...
Record the issuance of bonds at a discount. s Bond Issue B (A) Cash (B) Period Interest Interest Paid Expense Period Ending $640,000.0 x 9.0% 3/12 (E) X9.5% x (C) Amort. 3/12 (A) - (B) Apr. 1/18 (D)...
Air at $T_{1}=300 \mathrm{~K}, p_{1}=303 \mathrm{kPa}$, and $V_{1}=0.5 \mathrm{~m} / \mathrm{s}$ enters the Venturi shown in Fig. P5.43. The air leaves at $T_{2}=220 \mathrm{~K}$ and $p_{2}=$...
McNeil Company, a medium-sized manufacturer of microwave ovens, has been an audit client for the past five years. McNeil Co. has been steadily growing and recently hired a new CEO who has decided to...
A teaching assistant performs an experiment using an aluminum container, with a mass of 0 . 1 5 0 kg , that contains 0 . 2 8 5 kg of water, all initially at 3 0 . 0 C . The teaching assistant then...
The Margro Corporation is an automotive supplier that uses automatic turning machines to manufacture precision parts from steel bars. Margro's inventory of raw steel averages $600,000. John Oates,...
If the European euro is worth Canadian $1.60 and a Canadian dollar trades for U.S. $0.75, what is the exchange rate from U.S. dollars to European euros? (a) $2.13 (b) $1.44 (c) $1.20 (d) $0.95
If you want to receive a 7% inflation-free return on your investment and you expect inflation to be 9% per year, what actual interest rate must you earn? (a) 16% (b)2% (c) 1% (d) 7% (e) 9%
Find the slope of the line that passes through each pair of points? 1. (2, -1) and (-1, -4) 2. (-3.8, -7.16) and (-3.8, 1.16)
Punitive damages are in essence criminal fines that arguably should be paid to the state. True False
What is a coordination-of-benefits provision?
Give examples of three exceptions to the Cardozo rule of foreseeability.
If managers at Weight Watchers are interested in the average number of pounds that people on Weight Watchers diets lose, should they use a sample or the population to find out?
Refer to Table 2.2, which of the variables are qualitative and which are quantitative variables? Table 2.2 3-month T-bill Prime Private Private Net Goverment rate consumption investment exports...
On October 3, Kim Bailey paid $250,000 for a residential rental property. This purchase price represents $200,000 for the building and $50,000 for the land. Five years later, on June 25, she sold the...
Suppose you need to answer any four of seven essay questions on a history test and you can answer them in any order. a. How many different question combinations are possible? b. What is the...
TT Racing and Performance Motor Corporation wishes to evaluate two alternative CNC machines for NHRA engine building. Use the AW method at 10% per year to select the betteralternative. First cost, S...
The maintenance and operation (M&O) cost of front-end loaders working under harsh environmental conditions tends to increase by a constant $1200 per year for the first 5 years of operation. For a...
You work for Midstates Solar Power. A manager asked you to determine which of the following two machines will have the lower (a) Capital recovery (b) Equivalent annual total cost. Machine Semi2 has a...
why you assume value of Machine A is assumed to decrease by $7,000 each year for the purpose of these calculations?
1. You want to create a Dog object. Which of the following would you use to describe it? (Choose all that apply.) A. String breed B. int age C. boolean isADog D. String ownerName E....
Part 1: Cathy Forth Photography Services (20 marks) You have been hired by Cathy Forth as her new bookkeeper. She has given you the following information: Use the current date and provide an...

A person just turned 21 years old. If inflation is expected to average 2.4% per year for

Question:

Step by Step Answer:

By using Eq...View the full answer

Engineering Economy

Students also viewed these Business questions