HomeworkLib
Question

If inflation is increasing at 2.6 percent per year, and your salary increases at the same...

If inflation is increasing at 2.6 percent per year, and your salary increases at the same rate, how long will it take your salary to double? (Round up your answer to the next whole number.)

24 years

28 years

32 years

30 years

26 years

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

As per 72 rule time to double = 72/interest rate = 72/2.6=28 years

0 0
Add a comment
Know the answer?
Add Answer to:
If inflation is increasing at 2.6 percent per year, and your salary increases at the same...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • b. If the inflation rate is 4.8% per year, what will be the change in the...

    b. If the inflation rate is 4.8% per year, what will be the change in the purchasing power of your money over this period? (Use the Rule of 72 to compute the number of years. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. If the inflation rate is 4.8% per year, what will be the change in the purchasing power of your money over this period? (Use the Rule of 72...

  • Suppose that the inflation premium is 2 percent and the nominal interest rate is 9 percent....

    Suppose that the inflation premium is 2 percent and the nominal interest rate is 9 percent. Instructions: Round your answers to the nearest whole number. a. What is the real interest rate?      percent b. Given the level of inflation, how many years would it take for the price level to double?      years

  • Suppose that the inflation premium is 2 percent and the nominal interest rate is 9 percent....

    Suppose that the inflation premium is 2 percent and the nominal interest rate is 9 percent. Instructions: Round your answers to the nearest whole number. a. What is the real interest rate?       percent b. Given the level of inflation, how many years would it take for the price level to double?       years

  • If an ounce of gold, valued at $610, increases at a rate of 6.6 percent per...

    If an ounce of gold, valued at $610, increases at a rate of 6.6 percent per year, how long will it take to be valued at $1,000? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Number of years

  • If an ounce of gold, valued at $760, increases at a rate of 8.1 percent per...

    If an ounce of gold, valued at $760, increases at a rate of 8.1 percent per year, how long will it take to be valued at $1,000? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Number of years

  • If an ounce of gold, valued at $690, increases at a rate of 7.4 percent per...

    If an ounce of gold, valued at $690, increases at a rate of 7.4 percent per year, how long will it take to be valued at $1,000? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) what is the number of years ??

  • Complete the following table Population Growth Rate, k Doubling Time, T Country A 2.6% per year...

    Complete the following table Population Growth Rate, k Doubling Time, T Country A 2.6% per year Country B 26 years Population Growth Rate, k Doubling Time Country A 2.6% per year !years Country B % per year 26 years Round doubling time to the nearest whole number and round growth rate to the nearest tenth.)

  • 1. Your current salary is $100,000 per year. Every year you save 10 percent of your...

    1. Your current salary is $100,000 per year. Every year you save 10 percent of your salary and invest it in a retirement plan which provides you a guaranteed return of 6 percent per year. Assume the deposits will be made at the end of each year for the next 40 years. a) How much will you have at the end of 40 years if your salary grows at 6 percent per year? b) What annual fixed amount will you...

  • your salary next year is expected to be $40,000. assume you expect your salary to grow...

    your salary next year is expected to be $40,000. assume you expect your salary to grow at a steady rate of 3% per year for another 28 years. if the appropriate cost of capital is 10% what is the PV today of your future salary cash flow stream? assume the salary amounts are at the end of each of the next 28 years

  • You observe that the inflation rate in the United States is 2.0 percent per year and...

    You observe that the inflation rate in the United States is 2.0 percent per year and that T-bills currently yield 2.5 percent annually.    a. What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 5 percent per year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)      Inflation rate %    b. What do you estimate the inflation rate to be...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT