You expect to receive an inheritance of $50,000 six years from now. Its present worth at a real interest rate of 4% per year and an inflation rate of 3% per year is closest to: (a) $27,600 (b) $29,800 (c) $33,100 (d ) $50,000

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A: The inflation rate formula can be calculated as follows:

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Q: Set-E8. A newspaper reports that in the last 5 years, prices have increased a total of 80%. This is…

A: Let the annual inflation rate = r 80% increase in value means 1.8 time of original value. That means…

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A: Annual Savings in year 1  = Energy Saved* Price of energy  = 200,000*0.1  = 20,000 Now value of…

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A: Estimated total cost refers to the anticipated or predicted total cost of a specific expense or…

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A: Inflation adjusted interest rate is calculated as: if=i+f+i(f) Where: i: real interest rate f:…

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A:

Q: 1. A man deposited P25,000 in a bank with interest at 8% compounded monthly for 3 years, After 3…

A: Inflation is the rate of increase in prices over a given period of time. Inflation is typically a…

Q: The tuition in a private university was $25,000 per academic year in 1999. If the inflation rate has…

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A: Future value of annuity is calculated as follows.

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A: Inflation is the rate of increase in prices over a given period of time. Inflation is typically a…

Q: You would like to buy carcar t is currently on the market at $85,000, but you cannot afford it right…

A:

Q: How do you convert a unit of inflated currency (e.g., a dollar) into a constant-value currency…

A: Inflation refers to the continuous increase in price level. When the economy is experiencing…

Q: A diamond ring will be worth P35,000 in 2023. How much was it when it was bought in 2019 if the…

A: here we calculate the present worth of ring in 2019 which are as follow-

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