How much money can the Eastman Land and Cattle Company afford to spend now for a tractor trailer in lieu of spending $65,000 three years from now, if the interest rate is 13% per year and the inflation rate is 7% per year? NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part.

Maria, who is now 51 years old, is employed by a firm that guarantees her a pension of $35,000/year at age 65. What is the present value of her first year's pension if the inflation over the next 14 years is 3%/year compounded continuously? 4%/year compounded continuously? 6%/year compounded continuously? (Round your answers to the nearest cent.)

Today you borrowed $90,000 from a bank at an interest rate of 10.25%, compounded monthly. You are supposed to repay the loan and its interest charges in equal monthly payments over a 15-year period, with the first payment in a month from now. The estimated annual inflation rate is 6%, compounded monthly.(a) What is the amount of your monthly payments?(b) What is the bank's real effective annual rate of return on this deal after taking inflation into account?

A machine currently under consideration by Marcus Industries has a cost of $31, 000. When the purchasing manager complained that a similar machine the company purchased 5 years ago was much cheaper, the salesman responded that the cost of the machine has increased solely in accordance with the inflation rate, which has averaged 5% per year. When the purchasing manager checked the invoice for the machine he purchased 5 years ago, he saw that the price was $25,000. Was the salesman telling the truth about the increase in the cost of the machine? What should the machine cost now, provided the price increased by only the inflation rate? Use the formula

5. Funding the nest egg shortfall Determining Retirement Shortfall Yuan and Alex have 40 years to retirement. They are taking a personal finance course and have calculated their projected retirement income and investment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of $6,750.00 per year. Use the following tables to answer the questions about future value interest factors. Interest Factors-Future Value Interest Factors-Future Value of an Annuity Periods 3.00% 5.00% 6.00% 8.00% 9.00% 5.600 1.810 2.090 3.386 4.290 2.653 3.210 4.661 6.848 8.620 2.420 4.322 5.740 10.062 13.260 20.410 2.810 5.516 7.690 14.785 20 25 30 35 40 3.260 7.040 10 280 21 724 31 410 = The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Wu, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops. Complete the following table by…