With a salary of $43,300, a raise of 2.4%, and an inflation rate of 2.8%, then this person's real raise isnegative, then include a minus symbol.(Enter as $xxx.xx) If the answer is a

The nominal raise:Nominal raise=Current salary x Raise percentageGiven a salary of $43,300 and a…

Answered: With a salary of $43,300, a raise of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the nominal interest rate on a loan was 10 percent and the real interest rate was 8 percent, then the inflation rate during that time must have been: 9% 2% 1.25% 18%
Sally will earn $30,000 this year and $40,000 next year. The real interest rate is 20% between this year and next year; she can borrow or lend at this rate. She has no wealth at the start of this year and plans to finish next year having consumed everything she possibly can. She would like to consume the same amount this year as next year. The inflation rate is 0%. (a) How much should Sally save this year? How much will Sally consume in each of the two years? (b) How would your answers change if the real interest rate was 40% ?
Last year the jones family earned $40,000. This year their income is $42,000. If the inflation rate was 10%, did the jones family experience an increase/decrease/no change in their Normal income? Did the jones family experience an increase/decrease/no change in the real income ?
Assume you have won a lottery prize of $5,000, which works out great since you want to buy a new gaming PC that costs $5,500. You decide to save the lottery winnings for one year by purchasing a bank CD with one year until maturity. The interest rate on your deposit is 12% and inflation is expected to be 8% over the next year. You plan to work part-time to make up any shortfall in your savings covering the cost of the gaming PC one year from now. a. How much money will you have in your bank account at the end of one year? b. What is the real interest rate you expect to earn on your deposit over the next year? c. Will you have enough money from the savings to buy the PC next year? d. If your answer to c. is no, how many hours of work @ $15/hour will be required to make up the shortfall?
The purchase of a car requires a $30, 000 loan to be repaid in monthly installments for four years at 18% interest compounded monthly. If the general inflation rate is 6% compounded monthly, find the actual and constant dollar value of the 20th payment of this loan. Include both a CFD in actual dollars and a CFD in constant dollars.
Required information In wisely planning for your retirement, you invest $18,000 per year for 20 years into a 401K tax-deferred account. Assume you make a real return of 10% per year when the inflation rate averages 2.8% per year. How many future dollars will you have in the account immediately after your last deposit? You will have $ |future dollars in your account immediately after your last deposit.
For the 1974-1975 academnic year, the annual tuition of Memphis was S1,500. The current tuition of Memphis is nearly $30,000 for the 2016-2017 academic year. Compute the average inflation rate in Memphis tuition to two decimal places over the years from 1974 to 2016.
The idea that a regular annual inflation rate of 35 per cent requires CPP adjustments, but a regular annual inflation rate of 25 per cent does not, is quite absurd. Discuss.
Problem 14.044: Calculate the purchasing power with respect to today's dollar You just made an investment in an insurance policy that is guaranteed to pay you $3 million 20 years from now provided you live that long. What will be the purchasing power of that amount with respect to today's dollars if the market interest rate is 8% per year and the inflation rate stays at 4.3% per year over the 20-year period? The purchasing power of this amount is $
The consumer price index (CPI) of a country was approximately 200 at the beginning of year 2010. If inflation continued at an average rate of 2.5%, what would the index be at the beginning of year 2021?
Required information In wisely planning for your retirement, you invest $34,000 per year for 20 years into a 401K tax-deferred account. Assume you make a real return of 10% per year when the inflation rate averages 3.3% per year. How many future dollars will you have in the account immediately after your last deposit? You will have $ | future dollars in your account immediately after your last deposit.
if inflation is running at 8% and you want to negotiate a 2% raise in your salary, how large a raise should you ask for? 2% 6% 8% 10%

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With a salary of $43,300, a raise of 2.4%, and an inflation rate of 2.8%, then this person's real raise is negative, then include a minus symbol. (Enter as $xxx.xx) If the answer is a