5

Find the present value of the income (in dollars) over t1 years at the given annual inflation rate (Round your answer to two decimal places_28,000 z00t, r = 6%/0yea...

Question

Find the present value of the income (in dollars) over t1 years at the given annual inflation rate (Round your answer to two decimal places_28,000 z00t, r = 6%/0years

Find the present value of the income (in dollars) over t1 years at the given annual inflation rate (Round your answer to two decimal places_ 28,000 z00t, r = 6%/0 years



Answers

Inflation is running $3 \%$ per year when you deposit $\$ 1,000$ in an account earning interest of $5 \%$ per year compounded annually. In constant dollars, how much money will you have 2 years from now? [HINT: First calculate the value of your account in 2 years' time, and then find its present value based on the inflation rate.]

In this forever. We're told that someone invested $6250 and at the end of two years, they have 7000 290. So we want to find that interest rate for that. We're gonna use the company interest formula that we have in green. So we are going Teoh, start with the amount. 7 to 9. Medium out hot at the end. The amount that we invested times one plus r, which is the interest rate to the power of time. Um, which is two years. So that's divided by six 1002 150 is equal 21 plus r squared. I'm gonna take the square root from both sides. And then we moved that one over to the other side. All right, so what we want to do is simplify, but, um what? We have that fraction under the square root Teoh. For that, we can take a 10 from top of bodies were gonna divide by 10. That gives us because And this now where we need to use, take the square root so even have square root of seven to nine in 6 to 5, we'll square root of 729 is 27. And on this quarter, Alexis Hunter, 25 hours, don't you? So this is what we have are equals plus or minus 27/25 minus one. We got right that one as 25/25 to simplify over math. So I have do answers to the 1st 1 is gonna be 27 number 25 minus Tony by number 25. And the other one is gonna be our secret doing negative. 27 five minus 25. So that's simple for the 1st 1 27 minus 25. This to you. And since this is an interest rate we needed as it doesn't also to over 25 this 0.8 My list of the same thing with the other one negative 27 minus 25 is a negative 52 over 25. And that us of Dustin more is negative. 2.8 Now, since you're looking at an interest rate, we can't have a negative interest rates that we're not going to use this one. We are going to use this one, and interest rates must be written in a percentage. So the interest rate is eight absent

So we're trying to find the present value, We have this formula Holy here on the right and over here on the left, we've got arguments. Right? So first thing to do is convert this into you decimal form, Going to .05. And let's proceed to Plug everything else we have from 0 to 4 of thousands plus 50 to the T over to. So it's going to multiply by eight, a negative .05 T team. And so the simplest thing you could do is take all of that. Play that into a graphing calculator can use demos or correct calculator to have already and make sure that you're integrating from 0 to 4. Lower pound zero. Upper bound is four. And what you would get when you've done that Is that this is going to be approximately 4103 0.7 That's your answer.

Fitness problem. We're told that someone invested $6250 by the end of two years, they had $6760. So we're gonna be using our compound interest formula, which is this right here that I'm biting. And so, feeling some numbers, I want to find the interest rate so that a is the amount after the two years, The fusing, the show not, Do you have one plus r and timing years, which is, too, that's divided by 6250. Now, let's take the square root from both sides. And I were gonna move that one over to the other side. All right, so let's simplify our numbers a bit more. So we have six 1007 160 over 6000 250. Let's take out of 10 from, um, type of bottoms, and we just divide by 10. We left. What's 176 and 600 25. So now we're gonna take the square root of that. Quit. It was 676 in this garden of 6 25 minus one is equal to our and that IHS plus and minus the square root of 6 76 is 26 in this square, Brutus six, 25 25. And let's ride up. One must 25 of it. Don't fire to simply five or so. Then I can recall 26/25 minus five, just equal to 1/25. Since this is an interest rate, everyone, that's a decimal. And this is the same. My syrup, please. Here for then, Arkin also equal on negative 26 25 25 of it, which is equal to a negative 51 over 25. And that, as a decimal, is a negative two point syrup four. So we can't have a negative interest rates. This is gonna be we're not gonna use that. And we're gonna use this year of 104 So our interest rate ISS then, um, the interest rate. We must write it as a percentage. So circles here for so percentages 4%. And that is our answer.

Okay. This question we have to find out the present value of it means we have to find out present value of the amount that is equal to $59,673. Okay. Do in five years. 30 is five years. Okay. At an interest rate of six per year. Are is given six per year. And that is compounded continuously. Okay. So it is compounded continuously. So we have the formula of compounding continuously. That is a was to be raised to the power artie. Okay. And now we have to find out the present value. Okay so it will be P equals to a raise to the power negative R. T. Okay. And now we will put the values here. So P equals two A. That is a 59 1006 173 dot E. Raised to the power negative artists or minus our is 6%. That is 0.6 and t is five. Okay so it will be okay. Sorry. It will be B equals two 59 673 dot E. Raised to the power 0.6 multiplied by five. It is minus 0.3. So he raised to the power minus three, multiplied by 59 673. It will be B equals two $40 4000 $206.85. Okay? And this will be the present value. And this is the final answer of discussion. Thank you.


Similar Solved Questions

5 answers
Kinetict calalecs Teacnm velocity 0f 20 Amolmin nzyme that follow; Michacli:-Menten If km lor this substrate >10 * M calculate lhe velatity Ahen the concentration substrte eartion whel |S] = 1x 10 ' Mand b) (5]
kinetict calalecs Teacnm velocity 0f 20 Amolmin nzyme that follow; Michacli:-Menten If km lor this substrate >10 * M calculate lhe velatity Ahen the concentration substrte eartion whel |S] = 1x 10 ' Mand b) (5]...
5 answers
A designer IS creating window fOr a new nome_ Tne window I5 a semicircle With radius Of 9 inches placed at the top edge of an 18-inch by 24-inch rectangle. She plans to put wooden frame around the outside of the glass.9 in24 in18 in.2020 StrongMindWhat is the approximate length of the frame around the window?94.3 inches112.3 inches122.5 inches140.5 inches
A designer IS creating window fOr a new nome_ Tne window I5 a semicircle With radius Of 9 inches placed at the top edge of an 18-inch by 24-inch rectangle. She plans to put wooden frame around the outside of the glass. 9 in 24 in 18 in. 2020 StrongMind What is the approximate length of the frame aro...
5 answers
QUESTION 2What is the mass of 5 moles of NO3 in grams?
QUESTION 2 What is the mass of 5 moles of NO3 in grams?...
5 answers
Use graphing calculator to find where the curves intersect and to find the area between the curves. y = 3x2The left point of intersection is (Type integers or decimals rounded t0 the nearest thousandth _ as needed. Type an ordered pair )
Use graphing calculator to find where the curves intersect and to find the area between the curves. y = 3x2 The left point of intersection is (Type integers or decimals rounded t0 the nearest thousandth _ as needed. Type an ordered pair )...
5 answers
Anenekuteauttunatuem Ina Eelo cenenlu peulttotnnPuchanuch Cllnarueduntetoren Four Ohlurudo MeledanirOr UIILIIendabblyanticultu ualalet*olley 0yu Inaul Ina AlnlnnimnitEEaleLh Huuuu ItytuFemaD eruttu AIL enatu Eanluatletht @aun nkhiuy Oicn Innl Ine tJl0rtu9uThareaabuyMetuUntdJucthl?Gonn urat" Quttun (tn # St to Lnon mctnat T rnattDnaAanidartort Ludonl Jran nleuauecotn"mnaanlo tuat Nni una mrun Drjtm9+t Thnnuananat Ui7 [undicr CttFuarenatanel{uo
anenek uteauttunatuem Ina Eelo cenenlu peulttotnn Puchanuch Cllna rueduntetoren Four Ohlurudo MeledanirOr UIILII endabbly anticultu ualalet* olley 0yu Inaul Ina Alnlnni mnit EEaleLh Huuuu Itytu FemaD erutt u AIL enatu Eanluatletht @aun nkhiuy Oicn Innl Ine tJl 0rtu9u Thareaabuy MetuUntd Jucthl? Gon...
5 answers
QuestionThe figure below shows four position vectorsandTheir directions are given in the figure_ and their magnitudes are36 m 48 In 24 m 36 m.If the vectorC + component in metersKhat is the
Question The figure below shows four position vectors and Their directions are given in the figure_ and their magnitudes are 36 m 48 In 24 m 36 m. If the vector C + component in meters Khat is the...
5 answers
M Skg I+ bks_Ally hun sst E* 4k9} urpensiad 6ftec I scllides_uikk Ik t Iann, Hos Ec Gill ~H _sqity_be_tanpryed1o
M Skg I+ bks_Ally hun sst E* 4k9} urpensiad 6ftec I scllides_uikk Ik t Iann, Hos Ec Gill ~H _sqity_be_tanpryed 1o...
5 answers
Glven that In(3) X, In(6) Y, and In(2)express the given logarithmic value2 In terms of xX, Y, andIn( 54)
Glven that In(3) X, In(6) Y, and In(2) express the given logarithmic value2 In terms of xX, Y, and In( 54)...
5 answers
Show that il € € G has inilinite order then all thie elemeuts _ " € Z are all distiuct
Show that il € € G has inilinite order then all thie elemeuts _ " € Z are all distiuct...
5 answers
H5N1 and SARS are examples ofa. extinct species.b. forms of greenhouse gases.c. endangered habitats.d. emerging diseases.
H5N1 and SARS are examples of a. extinct species. b. forms of greenhouse gases. c. endangered habitats. d. emerging diseases....
5 answers
Consider the combustion of butane gas:2C4H10(g)+13O2(g)→8CO2(g)+10H2O(g), ΔHrxn=−5754kJCalculate the entropy change in the surroundings when thisreaction occurs at 25 ∘C and determine the sign of the entropychange of system. Express your answer in joules per kelvin tothree significant figures.
Consider the combustion of butane gas: 2C4H10(g)+13O2(g)→8CO2(g)+10H2O(g), ΔHrxn=−5754kJ Calculate the entropy change in the surroundings when this reaction occurs at 25 ∘C and determine the sign of the entropy change of system. Express your answer in joules per kelvin to three...
5 answers
A solutioncontains 1.21×10-2 M potassiumhydroxide and 5.70×10-3 M potassiumsulfide.Solid zinc acetate is added slowly tothis mixture.What is the concentration of sulfide ionwhen hydroxide ion begins toprecipitate?[sulfide] = M
A solution contains 1.21×10-2 M potassium hydroxide and 5.70×10-3 M potassium sulfide. Solid zinc acetate is added slowly to this mixture. What is the concentration of sulfide ion when hydroxide ion begins to precipitate? [sulfide] = M...
5 answers
Fireu"_ + 33u = 04(e) =genera| Goluticn
Fire u"_ + 33u = 0 4(e) = genera| Goluticn...
5 answers
Lys N~ NH3 NH3Lys NSHaN Porphobilinogen5-aminolevulinate (enamine form)5-aminolovulinato (imine form)Draw curved arrows t0 illustrate the movement of electrons in this step of the reactionArrow-pushing InstructionsCO2COzCOz~Lys 8 NJ NH3 H Lys NHz HaNNH3PreviousNextNnLys
Lys N~ NH3 NH3 Lys NS HaN Porphobilinogen 5-aminolevulinate (enamine form) 5-aminolovulinato (imine form) Draw curved arrows t0 illustrate the movement of electrons in this step of the reaction Arrow-pushing Instructions CO2 COz COz ~Lys 8 NJ NH3 H Lys NHz HaN NH3 Previous Next NnLys...
5 answers
Point) If € xw = (1,-3,5) and v w = 5,find tan(0) , where 0 is the angle between U and W _tan(e)
point) If € xw = (1,-3,5) and v w = 5,find tan(0) , where 0 is the angle between U and W _ tan(e)...
5 answers
0q Achul ph pencent dkeocnton dcctr acid sohaion wtat & t Lookng at tle theoretialpH ofa 0.010 ofaccli acul in ths sohtin?aci i 4 0.00010 aceti: acid counan wrh the percent dissocition of accte: How does tlb sohutk?weak acid u5 becons more dirte, nenccn dissocuton ofa What ou say about th: trenl
0q Achul ph pencent dkeocnton dcctr acid sohaion wtat & t Lookng at tle theoretialpH ofa 0.010 ofaccli acul in ths sohtin? aci i 4 0.00010 aceti: acid counan wrh the percent dissocition of accte: How does tlb sohutk? weak acid u5 becons more dirte, nenccn dissocuton ofa What ou say about th: tre...

-- 0.021823--