Assume you save $6000 each year starting this year until your planned retirement 40 years from now. The buying power of the money in terms of today’s dollars at the market interest rate of 10% per year and inflation rate of 5% per year is closest to: (choose one)
(a) $377,200
(b) $605,350
(c) $1,318,150
(d ) $2,655,550
Find accumulated amount in future dollars, then divide by inflation rate
F = 6000(F/A,10%,40)
= 6000(442.5926)
= $2,655,556
Buying power = 2,655,556/(1 + 0.05)??
= $377,210
Answer is (a) $377,200
You might also like to view...
_________________________ are short lines that overlap or are placed inside the axis line. They can be added to axis lines to emphasize the units or increments specified on the scale.
Fill in the blank(s) with the appropriate word(s).
Connection diagrams should be used to _____.
a. indicate the paths, interconnections, and component parts of an electric circuit b. show the wiring of instrument and electrical control devices in an elementary ladder or schematic form c. show the actual wiring connections between unit assemblies or equipment d. show the internal wiring connections between the parts that make up an apparatus
In general, radio frequencies are
A) 530 kHz to 88 MHz B) frequencies from 10KHz to about 300GHz C) frequencies from 100 kHz to 100 GHz D) frequencies from 1KHz to about 10KHz
On a resistor with four bands of color code, the fourth band represents:
A) the voltage rating. B) the wattage rating. C) the tolerance percentage. D) the multiplier value.