An engineer who is now 65 years old began planning for retirement 40 years ago. At that time, he thought that if he had $1 million when he retired, he would have more than enough money to live his remaining life in luxury. Assume the inflation rate over the 40-year time period averaged a constant 4% per year. (a) What is the CV purchasing power of his $1 million at age 65? (Hint: Use the day he started 40 years ago as the base year. (b) How many future dollars should he have accumulated over the 40 years to have a CV purchasing power equal to $1 million at his current age of 65?
What will be an ideal response?
(a) CV = 1,000,000/(1.04)?? = $208,289
(b) Future dollars = 1,000,000(1.04)?? = $4,801,021
Trades & Technology
You might also like to view...
Grounded electrical plugs can be easily identified because they have _____ .
A. three prongs B. orange cords C. UL-tested tags D. triangular heads
Trades & Technology
? Identify and state the historical significance of Stephen W. Kearny.
What will be an ideal response?
Trades & Technology
Branch ducts using flexible duct should not be longer than _____.
a. 3' (0.9 m) b. 6' (1.9 m) c. 8' (2.4 m) d. 12' (3.7 m)
Trades & Technology
Micro switches are used in small spaces that would never be accessible to a larger device.
Answer the following statement true (T) or false (F)
Trades & Technology