Cost of living calculator

Assignment Help Financial Management

Reference no: EM131300050

Refer to the “Cost of Living Calculator” at the American Institute for Economic Research on the left-hand side of the bottom of the home page.

Let’s assume that a good-paying management job in 1956 paid about $12,000. For this problem take all dollar calculations out to the penny and all percentage calculations out two decimal places.

a. How much was this salary worth a half-century later in 2016?

b. Using your trusty financial calculator, what is the annual percentage growth rate during that 60-year period?

c. What is the total percentage growth over the entire 60 year period?

Reference no: EM131300050

Questions Cloud

What is the price-earnings ratio : Jupiter Explorers has $9,600 in sales. The profit margin is 4 percent. There are 6,400 shares of stock outstanding. The market price per share is $1.70. What is the price-earnings ratio?

Interest had compounded annually : Beatrice invests $1,410 in an account that pays 3 percent simple interest. How much more could she have earned over a 4-year period if the interest had compounded annually?

Provide an approximate value of the annual cash flow : A company wants to purchase new equipment to replace some old, existing equipment. The old equipment is fully depreciated and has a current market value of $1.2M. The new equipment costs $10.4M and will be depreciated for 5 years. Describe and provid..

Assuming the price of the car remains constant : Suppose you are committed to owning a $195,000 Ferrari. You believe your mutual fund can achieve an annual rate of return of 8 percent and you want to buy the car in 7 years. How much must you invest today to fund this purchase assuming the price of ..

Cost of living calculator : Refer to the “Cost of Living Calculator” at the American Institute for Economic Research on the left-hand side of the bottom of the home page. Using your trusty financial calculator, what is the annual percentage growth rate during that 60-year perio..

A bank is negotiating a loan : A bank is negotiating a loan. The loan can either be paid off as a lump sum of $120,000 at the end of five years, or as equal annual payments at the end of each of the next five years. If the interest rate on the loan is 12?% what annual payments sho..

Threat are considered such a threat to organizations : What is the present value of $13,000 to be received 4 years from today if the discount rate is 5 percent? why Insider Threat are considered such a threat to organizations? Lee Sun's has sales of $4,200, total assets of $3,900, and a profit margin of ..

What is the break-even ebit for the firm : A firm is all equity with 20,000 shares outstanding, with a current price per share of $24.09. The company is considering issuing $180,000 in debt with a 12% interest rate and buying back shares with all of the proceeds. Assume there are no taxes. Wh..

Taxpayer with no dependents and no itemized deductions : Calculate the 2014 total tax for Gordan Geist, a single taxpayer with no dependents and no itemized deductions. He has an active income of 40,000, short-term capital gain income of 4,000 from sale of stock, and 7,800 from book royalties.

User Account

All Pages