Credit Cards
Everything you’ll ever need to know about Credit Cards you can find here at Linka Credit Cards 400 payday loan.
What annual amount is required to deposit for five years to accumulate the amount of money with the same purchasing power as $ 680.58 today if the interest rate at market value is 10% per year and inflation is 8% per year?
Solution First, find the actual number of future (inflated) dollars that will be required five years from now equivalent to $ 680.58 today. This is case 3 and Eq. (14.10) applies. F = (current purchasing power) (1 + ƒ) 5 = 680.58 (1.08) 5 = $ 1,000 The actual amount of the annual deposit is calculated with the interest rate (inflated) at market value of 10%. This is case 4 where A is calculated for a given F value. A = 1,000 (A / F, 10%, 5) = $ 163.80
Comment The real interest rate is i = 1.85%, as determined by equation (14.9). To put the above calculations in perspective, if the inflation rate is zero when the real interest rate is 1.85%, the amount of future money with the same purchasing power as $ 680.58 today is, in effect, $ 680.58. So the annual amount required to accumulate this future amount in five years is A = 680.58 (A / F, 1.85%, 5) = $ 131.17. That is, $ 32.63 less than the $ 163.80 calculated before, where ƒ = 8%. This difference is due to the fact that, during inflationary periods, the dollars deposited have more purchasing power than the dollars recovered at the end of the period.
Online Credit Card
online credit card,
credit card online,
online credit card processing,
credit card online uk,
More…
Credit Card
credit card sentinel,
low interest credit card,
accept credit card,
credit card insurance,
More…
Credit
secured credit card,
credit reporting,
credit bureau,
instant credit,
More…
Bank Credit Card
bank of scotland credit card,
royal bank of scotland credit card,
royal bank scotland credit card,
bank of ireland credit card,
More…
Low Interest Credit Card
low interest credit card,
credit card low interest,
low interest rate credit card,
low interest credit card uk,
More…
Loans
Mortage,
Credit Card Loans,
Business Loan,
loans,
More…
Visa
visa,
visa requirements,
visa application,
visa uk,
More…
Mastercard
mastercard,
mastercard priceless,
mastercard parody,
bank of scotland mastercard,
More…
American Express
american express,
american express credit card,
american black card credit express,
american express travel insurance,
More…
Scotland Credit Card
bank of scotland credit card,
royal bank of scotland credit card,
royal bank scotland credit card,
royal bank of scotland credit card centre,
More…
England Credit Card
credit cards england,
credit cards in england,
Bank of England Credit Card,
credit card companys in england,
More…
Ireland Credit Card
credit cards ireland,
application mbna credit card in ireland,
credit cards republic ireland,
bank ireland credit card,
More…
Unsecured Credit
unsecured credit cards,
unsecured loans bad credit,
unsecured credit card,
bad credit unsecured loans,
More…
Secured Credit
secured credit cards,
secured credit card,
secured credit card uk,
secured credit cards uk,
More…
|
