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The bank is paying 11.42% compounded annually. The inflation is expected to be 5.67% per year.
What is the market interest rate?
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- The bank is paying 11.26% compounded annually. The inflation is expected to be 17.56% per year. What is the inflation rate?Suppose you start saving for retirement when you are 45 years old. You invest $5,000 the first year and increase this amount by 3% each year to match inflation for a total of 20 years. The interest rate is 10% per year. How much money will you have saved when you are 65 years old?If the inflation rate is 4.95% compounded annually, how long will it take for prices to double? years
- Maria invested 20,000 Pesos in a savings account 10 years later she withdrew all her savings amounting to 44,392.80 Pesos. What was the monthly nominal interest rate of the account? * 8% 5% 10% 12%If P10k is lend today at 12% compounded annually is to be repaid in one lump sum at the end of 5 years, and if the rate of inflation is 7.5%, what is the real rate of return?You borrow $5000 from a family member and agree to pay it back in 5 months. Because you are part of the family, you are only being charged an interest at the rate of 0.5% per month. How much will you owe after 6 months? How much is the interest? What is the effective interest rate? What is the corresponding nominal rate?
- Trevor's starting salary at his new job is $40,000. His company gives a performance raise of 5% each year. If Trevor continues in the same position and always receives the performance raise, in how many years will he double his salary?1. Sally Johnson loaned a friend $10,000 at 15% interest, compounded annually. The loan will be paid in four equal end-of-year payments. Sally expects the inflation rate to be 3%. After taking inflation into account, what rate of return is Sally receiving on the loan? Compute your answer to the nearest 0.1%.Joe just completed his engineering degree and started to work for an engineering firm. Joe wants to retire early after 30 years working. He plans to invest $5,000 at the end of every year for a 30-year career. If Joe needs $3,954,750 (about $1,400,000 in today's dollars accounting for an expected 3.5% inflation rate) in savings at retirement, what interest rate must the investment earn?
- A couple decided that for every child that will be born they will place a deposit in the bank so that the child's 18th birthday he will received an amount of P 300,000. If they deposit today an amount of P 15,249.13, what is the bank's nominal rate annually?The effective interest rate is 9.38%. If interest is compounded monthly, what is the nominal interest rate?An engineer is planning for a 15-year retirement. In order to supplement his pension and offset the anticipated effects of inflation, he intends to withdraw₱5000 at the end of the first year, and to increase the withdrawal by ₱1000 at the end of each successive year. How much money must the engineer have in his savings account at the start of his retirement, if money earns 6% per year, compounded annually?