This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Assume the retiree had a third option: receive a lump sum of 750,000 five years from now. If the ... (Read 130 times)

cartlidgeashley

  • Hero Member
  • *****
  • Posts: 572
on: Jun 30, 2018
Assume the retiree had a third option: receive a lump sum of 750,000 five years from now. If the interest rate is 4 percent, approximately how much is the future 750,000 to be received in 5 years worth today?
 
  A) 586,445 B) 616,445 C) 630,000 D) 646,555
 
  Scenario 12.1: Jennifer has decided to give up her pack-a-day smoking habit and invest the money she would have spent on cigarettes in a retirement account. At 6.00 a pack, Jennifer is currently spending 2,190 per year on cigarettes. Jennifer is 25 years old and plans to retire in 35 years, at age 60. She has chosen a retirement account that will earn a long-term average return of 5 percent per year. Jennifer is currently earning 40,000 annually. Assume that the average annual inflation rate will be 5 percent per year, that the cost of cigarettes will increase with inflation, and that Jennifer's income will also rise with the inflation rate.

Question 2

The exchange rate of a currency in a black market:
 
  A) will be less favorable to sellers of domestic currency than the official exchange rate.
  B) will be more favorable to sellers of domestic currency than the official exchange rate.
  C) will be more favorable to both the sellers and the buyers of domestic currency than the official exchange rate.
  D) will be less favorable to both the sellers and the buyers of domestic currency than the official exchange rate.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ndhahbi

  • Sr. Member
  • ****
  • Posts: 390
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

A


cartlidgeashley

  • Member
  • Posts: 572
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

Laurenleakan

  • Member
  • Posts: 309
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

This portrait of Thomas Jefferson is considered an accurate likeness, painted when he was thirty-sev This portrait of Thomas Jefferson is considered an accurate likeness, painted when he was thirty-sev
A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan
A medical assistant holds a specimen container to receive a biopsy sample. A medical assistant holds a specimen container to receive a biopsy sample.
Approximately 40 percent of farmers in the United States are 55 years old or older Approximately 40 percent of farmers in the United States are 55 years old or older
The apples of today are larger and sweeter than their ancestors, thanks to hundreds of years The apples of today are larger and sweeter than their ancestors, thanks to hundreds of years
Prevalence of lifetime mood disorders for Canadian men and women age 55 years and over Prevalence of lifetime mood disorders for Canadian men and women age 55 years and over
Video: Definitions of stroke volume, preload definition & Factors influencing stroke volume

For a complete list of videos, visit our video library