You recently found that a rich Uncle Herbert you never knew existed left you $172.866 in...

 

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You recently found that a rich Uncle Herbert you never knew existed left you $172.866 in his will. The problem is, that money is not available to you for 13 more years (because uncle Herbert didn't think you were old enough to handle it - but he didn't know you all that well). Because you did so well in your Economics classes, you are aware of inflation (which you estimate to average 2.61% per year over the next 13 years). What is the value of the $172,866 your uncle left you in today's dollars? Enter your answer to the nearest cent! Question 13 5 pts On January 1, you borrowed $49.078 from your parents and have agreed to amortize the loan over 6 years making equal annual payments at the end of each year. Therefore at the end of that time the loan balance must be zero. You offered to pay 6.18% interest rate on the loan. What would be the balance on the loan at the beginning of the second year? Round to the nearest penny and enter your answer in the box below. Question 14 4 pts Lou Gehrig was major league baseball's MVP in 1927. His annual salary that year was $8,000. The MVP for 2016 was Mike Trout, earning $15.250,000 per year. What is the annual rate of salary appreciation over those years? Enter your answer as a full percentage number. For example, if your answer is 12.33% you must enter 12.33 only. Do not enter the "%" sign. You recently found that a rich Uncle Herbert you never knew existed left you $172.866 in his will. The problem is, that money is not available to you for 13 more years (because uncle Herbert didn't think you were old enough to handle it - but he didn't know you all that well). Because you did so well in your Economics classes, you are aware of inflation (which you estimate to average 2.61% per year over the next 13 years). What is the value of the $172,866 your uncle left you in today's dollars? Enter your answer to the nearest cent! Question 13 5 pts On January 1, you borrowed $49.078 from your parents and have agreed to amortize the loan over 6 years making equal annual payments at the end of each year. Therefore at the end of that time the loan balance must be zero. You offered to pay 6.18% interest rate on the loan. What would be the balance on the loan at the beginning of the second year? Round to the nearest penny and enter your answer in the box below. Question 14 4 pts Lou Gehrig was major league baseball's MVP in 1927. His annual salary that year was $8,000. The MVP for 2016 was Mike Trout, earning $15.250,000 per year. What is the annual rate of salary appreciation over those years? Enter your answer as a full percentage number. For example, if your answer is 12.33% you must enter 12.33 only. Do not enter the "%" sign.

Answer rating: 100% (QA)

Question 12 Present Value Calculation To find the present value todays dollars of 172866 that will b... View the full answer