An engineer deposits $10,000 into an account when the market interest rate is 10% per year and
Question:
An engineer deposits $10,000 into an account when the market interest rate is 10% per year and the inflation rate is 5% per year. If the account is left undisturbed for 5 years,
(a) How much money will be in the account?
(b) What will be the purchasing power in terms of today’s dollars?
(c) What is the real rate of return on the account?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (9 reviews)
a F 10000FP105 1000016105 16105 b Purchasin...View the full answer
Answered By
Shadrack Mulunga
I am a Biochemistry by profession. However, I have explored different fields of study. My quest to explore new fields has helped me gain new knowledge and skills in Business, clinical psychology, sociology, organizational behavior and general management, and Project Management. I count my expertise in Project management, in particular, creation of Work Break Down Structure (WBS) and use of Microsoft Project software as one of my greatest achievement in Freelancing industry. I have helped thousands of BSC and MSC students to complete their projects on time and cost-effectively using the MS Project tool. Generally, I find happiness in translating my knowledge and expertise to success of my clients. So far, i have helped thousands of students to not only complete their projects in time but also receive high grades in their respective courses. Quality and timely delivery are the two key aspects that define my work. All those who hired my services always come back for my service. If you hire my services today, you will surely return for more. Try me today!
5.00+
154+ Reviews
289+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
On December 31, 2012, when the market interest rate is 10%, OBrien Realty, Co., issues $800,000 of 7.25%, 10-year bonds payable. The bonds pay interest semiannually. Requirements 1. Determine the...
-
On December 31, 2016, when the market interest rate is 10%, Timmony Realty issues $450,000 of 7.25%, 10-year bonds payable. The bonds pay interest semiannually. The present value of the bonds at...
-
On December 31, 2016, when the market interest rate is 16%, Bryant Realty issues $700,000 of 17.25%, 10-year bonds payable. The bonds pay interest semiannually. Bryant Realty received $743,262 in...
-
Susan has completed a concept map, assisted by her colleagues, and has recently returned from her meeting with her manager. Her manager is very concerned about the high attrition rate and poor...
-
The following data were taken from the financial records of Glum Corporation for 2017: Sales......................................$3,600,000 Bond interest expense.....................120,000 Income...
-
The Gleason Company, a Canadian division of a large international company, has prepared estimated costs for next year that can be traced to each department as follows: Building and grounds...
-
The case study can be completed without GST or with GST using either the rates for Australia or New Zealand. Inventory can be accounted for using either the periodic or the perpetual method. We have...
-
Portman Corporation has retained earnings of $675,000 at January 1, 2010 Net income during 2010 was $1,400,000, and cash dividends declared and paid during 2010 totaled $75,000. Prepare a retained...
-
11. SO2Cl2 on reaction with excess of water results into acidic mixture SO2Cl2 + H2O H2SO4 + 2HC1 16 moles of NaOH is required for the complete neutralization of the resultant acidic mixture. The...
-
Three professors examined awareness of four widely disseminated retirement rules among employees at the University of Utah. These rules provide simple answers to questions about retirement planning...
-
Test whether a thermostatic switch is properly set to 50C against the alternative that its setting is too low. Use a sample of 9 values, 8 of which are less than 50C and 1 is greater.
-
Find a 99% confidence interval for the mean of a normal population from the sample: Melting point (C) of aluminum 660, 667, 654, 663, 662
-
Refer to the revenue arrangement in E18-10. Repeat the requirements, assuming (a) Geraths estimates the standalone selling price of the installation based on an estimated cost of $400 plus a margin...
-
Jeanne Dunne, a bank teller, provided a description of a bank robber "moments" following the robbery. The robber was identified as an African American with dark skin, a wide nose, and medium build....
-
You are a consultant hired to assist Healthy-Prep Meal (HPM) with their interview plan. HPM is a new company that is a local meal provider catering to clients with specific dietary needs or health...
-
If you are 29 miles due west of Denver and your friend is 20 miles due north of Denver, what is the shortest distance from your friend to you ?
-
Ex F(w,x,y,z)=wx'y+yz+(yz')(xy)= a) Write a truth table and show the minterms and maxterms with symbols. b) Simplify the function F, using Karnaugh map (sum-of-products and product-of-sums). c) Draw...
-
Intellectual property laws were initially created to protect creators and foster innovation. Today, some may argue that these laws are used by large corporations to wield unfair competitive advantage...
-
The smooth pin is supported by two leaves A and B and subjected to a compressive load of 0.4 kN/m caused by bar C. Determine the intensity of the distributed load w 0 of the leaves on the pin and...
-
The trade-off theory relies on the threat of financial distress. But why should a public corporation ever have to land in financial distress? According to the theory, the firm should operate at the...
-
Explain how industry sales and industry profits behave over the product life cycle.
-
Cite two examples of products that you think are currently in each of the product life-cycle stages. Consider services as well as physical goods.
-
Explain how you might reach different conclusions about the correct product life-cycle stage(s) in the worldwide automobile market.
-
A 2.00 kg box is suspended from the end of a light vertical rope. A time-dependent force is applied to the upper end of the rope, and the box moves upward with a velocity magnitude that varies in...
-
Vector C has a magnitude of 21.0 m and points in the -y- direction. Vectors A and B both have positive y-components, and make angles of a = 43.9 and = 25.7 with the positive and negative x-axis,...
-
Jacarda Company makes a composting bin that is subject to wide seasonal var a quarterly basis by dividing each quarter's manufacturing costs (materials, labour, and overhead) by the quarter's...
Study smarter with the SolutionInn App