In 10 years from now, how many future dollars will have the same buying power as $24,000 today? The market interest rate is 10% per year and the inflation rate is 6% per year. The future amount is $
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- If the inflation rate is expected to be 3% for the next 10 years, what annual income will be needed 10 years from now in order to have the same purchasing power as $25,000 today?What is the value today of a money machine that will pay $1,507.00 per year for 10.00 years? Assume the first payment is made today and that there are 10.0 total payments. The interest rate is 7.00%.At a time when the inflation rate is 8% per year, $100,000 (future dollars) 15 years from now is equivalent to how many of today’s constant-value dollars? Solve manually please
- An economy is experiencing inflation at an annual rate of 8%. If this continues, what will P2000 be worth three years from now in terms of today’s pesos?The future amount of P100,000 for a period of 8 years is equal to P341,655.49, considering money is worth 10% per year with an inflation rate of x percent. Find the value of x.An investor lends $10,000 today, to be repaid in a lump sum at the end of10 years with interest at 10% (= im) compounded annually.What is the real rate of return, assuming that the general price inflation rate is 8% annually?
- (Present Value of an Income Stream)Suppose the market interest rate is 10 percent. Would you be willing to lend $10,000 if you were guaranteed to receive $1,000 at the end of each of the next 12 years plus a $5,000 payment 15 years from now? Why or why not?An investment product promises to pay $500 at the end of the fifth year (year 5), and the payment will grow at a constant rate 5% every year forever. Assume that the discount rate is 20%, how much are the future payments worth today (att 0)?An investment offers $6,300 per year, with the first payment occurring one year from now. The required return is 5 percent. What would the value be today if the payments occurred for 10 years? What would the value be today if the payments occurred for 35 years? What would the value be today if the payments occurred for 65 years? What would the value be today if the payments occurred forever?
- What is the value today of $1,400 per year, at a discount rate of 10 percent, if the first payment is received 6 years from now and the last payment is received 29 years from today?An annuity pays $1000 per year for 12 years. Inflation is 6 percent per year. The annuitycosts $7500 now. so clearly answer the following in details with final results in numbers(a) What is the current dollar internal rate of return? (b) What is the real internal rate of return?What will $82,000 grow to be in 11 years if it is invested today at 8% and the interest rate us compounded monthly?