A loaf of bread is about $2 on sale today. If the rate of inflation was...
A loaf of bread is about $2 on sale today. If the rate of inflation was 4% and compounded monthly, what would have you parents paid 50 years ago for the same loaf?
a. 2 cents
b. 5 cents
c. 10 cents
d. 12 cents
e. 25 cents
Homework Answers
The correct answer is e) 25 cents
Explanation
In order to calculate value of loaf 50 years back, we can use the following formula
Future value
= value of loaf 50 years back × (1+(.04/12)^(50×12)
200 cents = value of loaf 50 year back × 7.36452
200÷ 7.36452
27 cents = value of loaf 50 years back
25 cents (rounded off)
Thus the correct answer is 25 cents
Add Answer to:
A loaf of bread is about $2 on sale today. If the rate of
inflation was...
You have $100 invest for 1 year at a rate of 10%. Bread sells for $2...
You have $100 invest for 1 year at a rate of 10%. Bread sells for $2 today and that means you can buy 50 loaves today. Bread is expected to have a 4% inflation next year. What is your real rate of return? How many loaves of bread can you buy next year?
please show work!! You are about to deposit $671 into one of the following savings accounts...
please show work!!
You are about to deposit $671 into one of the following savings accounts to be left on deposit for 25 years. Each bank offers an account with a different interest rate and compounding period. Assuming you want to maximize your wealth, how much money would be in the bank account that offers the best effective rate of return after 25 years? BANK A: 9.5 percent rate compounded semi-annually BANK B: 9.4 percent rate compounded monthly BANK C:...
Suppose the equilibrium price of bread is $2 per loaf. What would be the efficiency implications...
Suppose the equilibrium price of bread is $2 per loaf. What would be the efficiency implications of a government policy that prevents the price of bread from rising above $1? A. The outcome would be inefficient since the marginal cost of producing bread is less than the marginal benefit to the consumers. B. The outcome would be inefficient since the marginal benefit to consumers is less than the marginal cost of producing the bread. C. The outcome would be efficient...
7. An investor buys some land for $40,000 and sells it 12 years later for $115,000. at the time of sale was 26%. Inflation during this time was 4% per year. growth rate of return for this investm...
7. An investor buys some land for $40,000 and sells it 12 years later for $115,000. at the time of sale was 26%. Inflation during this time was 4% per year. growth rate of return for this investment? (10 points) The tax rate for gains What is the annual real You have a new job as an engineer and would like to buy a condominium in 4 years. real estate listings for the city where you live and condos similar...
A certain kingdom features a competitive market for rye bread. The inverse demand for rye bread...
A certain kingdom features a competitive market for rye bread. The inverse demand for rye bread is p = 10–(q/10) and the supply function is q = 10 + 5p, where p is the price in dollars and q is loaves of bread. The king made it illegal to sell rye bread for a price above 5 dollars per loaf. To avoid shortages, he agreed to pay bakers enough of a subsidy for each loaf of bread so as to...
4-1If Samantha invests $700 today in an account that pays 4 percent interest compounded annu- ally,...
4-1If Samantha invests $700 today in an account that pays 4 percent interest compounded annu- ally, how much will she have in her account four years from today? 4–2 Fifteen (15) years ago, your parents purchased an investment for $2,500. If the investment earned 6 percent interest each year, how much is it worth today? 4–3 Fiona plans to invest $500 later today. She wants to know to what amount her investment will grow in 20 years if she earns...
Question 1 Consider the monthly market for whole grain bread in Tasmania with an upward sloping...
Question 1 Consider the monthly market for whole grain bread in Tasmania with an upward sloping supply curve and a downward sloping demand curve. The current equilibrium price of whole grain bread is $3 per loaf and 30,000 loaves are bought and sold each month. a. Draw a diagram showing the monthly market for whole grain bread in Tasmania. Include and label the demand curve, supply curve, equilibrium price and quantity. b. If the price per loaf was temporarily $4...
What is the future value of $10,000 in 3 years if the appropriate rate is 5%?...
What is the future value of $10,000 in 3 years if the appropriate rate is 5%? O a. $8,638.38 b. $8,500.00 O c. $11.576.25 d. $11,500 How much is needed to be saved today to have $10,000 in 10 years if you will earn 6%, compounded monthly? a. $5.500.00 b. S5,496.33 c. $5,583.95 d. $6,000.00 What is the effective annual rate of a 12% APR compounded monthly? O a. 1% O b. 12.68% O c. 12% O d. 12.12% Your...
a. A supermarket chain buys loaves of bread from its supplier at $0.5 per loaf and...
a. A supermarket chain buys loaves of bread from its supplier at $0.5 per loaf and sells them at $0.75 per loaf. The chain is considering two options to bake its own bread. Capital investment Useful life (Years) Annual fixed costs Machine A $8,000 7 $2,000 Machine B $12,000 7 $3,500 Neither machine has a market value at the end of seven years, and MARR is 10% per year. If the demand for bread at this supermarket is 20,000 loaves...
Joey's Pizza Parlor is considering the purchase of a large oven and related equipment for mixing and baking Joey's Favorite Bread. The oven and equipment would cost $150,000 delivered and installed. It would be usable for about 15 years, after which it wo
Joey's Pizza Parlor is considering the purchase of a large oven and related equipment for mixing and baking Joey's Favorite Bread. The oven and equipment would cost $150,000 delivered and installed. It would be usable for about 15 years, after which it would have a 10% scrap value.The following additional information is available.Joey estimates that the purchase of the oven and equipment would allow the pizza parlor and restaurant to bake and sell 90,000 loaves of crazy bread each year....
please show work!!
You are about to deposit $671 into one of the following savings accounts to be left on deposit for 25 years. Each bank offers an account with a different interest rate and compounding period. Assuming you want to maximize your wealth, how much money would be in the bank account that offers the best effective rate of return after 25 years? BANK A: 9.5 percent rate compounded semi-annually BANK B: 9.4 percent rate compounded monthly BANK C:...
7. An investor buys some land for $40,000 and sells it 12 years later for $115,000. at the time of sale was 26%. Inflation during this time was 4% per year. growth rate of return for this investment? (10 points) The tax rate for gains What is the annual real You have a new job as an engineer and would like to buy a condominium in 4 years. real estate listings for the city where you live and condos similar...
What is the future value of $10,000 in 3 years if the appropriate rate is 5%? O a. $8,638.38 b. $8,500.00 O c. $11.576.25 d. $11,500 How much is needed to be saved today to have $10,000 in 10 years if you will earn 6%, compounded monthly? a. $5.500.00 b. S5,496.33 c. $5,583.95 d. $6,000.00 What is the effective annual rate of a 12% APR compounded monthly? O a. 1% O b. 12.68% O c. 12% O d. 12.12% Your...
a. A supermarket chain buys loaves of bread from its supplier at $0.5 per loaf and sells them at $0.75 per loaf. The chain is considering two options to bake its own bread. Capital investment Useful life (Years) Annual fixed costs Machine A $8,000 7 $2,000 Machine B $12,000 7 $3,500 Neither machine has a market value at the end of seven years, and MARR is 10% per year. If the demand for bread at this supermarket is 20,000 loaves...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago