Change in the purchasing power of your money

Assignment Help Financial Management

Reference no: EM131592360

a. If the interest rate is 7.8% per year, approximately how long will it take for your money to quadruple in value? (Use the Rule of 72. Do not your intermediate calculations. Round your answer to 2 decimal places.)

b. If the inflation rate is 4.9% 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.)

Reference no: EM131592360

Questions Cloud

Possible treatments for tax purposes of a net operating loss : What are the possible treatments for tax purposes of a net operating loss? What are the circumstances that determine the option to be applied?

Determine the amount of deferred taxes : The book basis of depreciable assets for Erwin Co. is $900,000, and the tax basis is $700,000 at the end of 2015. The enacted tax rate is 34% for all periods.

What is the project discounted payback : its expected cash inflows are $11,000 per year for 8 years, and its WACC is 8%. What is the project's discounted payback?

Determine the amount of total income tax expense : Roth Inc. has a deferred tax liability of $68,000 at the beginning of 2015. At the end of 2015, it reports accounts receivable on the books at $90,000.

Change in the purchasing power of your money : If the inflation rate is 4.9% per year, what will be the change in the purchasing power of your money over this period?

Difference between a future taxable and deductible amount : What is the difference between a future taxable amount and a future deductible amount? When is it appropriate to record a valuation account for a deferred.

Objective of profit maximization for the firm : What ethical constraints from the Bible are on the behavioral objective of Profit Maximization for the firm? Be specific.

Most challenging and difficult concept for risk and return : What is the most challenging and difficult concept for risk and return. Which accounting method gives retailers a tax advantage during inflationary times?

What is the journal entry necessary to adjust deferred taxes : Addison Co. has one temporary difference at the beginning of 2014 of $500,000. The deferred tax liability established for this amount is $150,000.

User Account

All Pages