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Solved: Rosalie the Retiree knows that when she retires in 16 years, her company will

Principles of Economics | 2nd Edition | ISBN: 9781947172364 | Authors: Steven A. Greenlaw, David Shapiro, Timothy Taylor ISBN: 9781947172364 471

Solution for problem 37 Chapter 22

Principles of Economics | 2nd Edition

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Principles of Economics | 2nd Edition | ISBN: 9781947172364 | Authors: Steven A. Greenlaw, David Shapiro, Timothy Taylor

Principles of Economics | 2nd Edition

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Problem 37

Rosalie the Retiree knows that when she retires in 16 years, her company will give her a one-time payment of $20,000. However, if the inflation rate is 6% per year, how much buying power will that $20,000 have when measured in todays dollars? Hint: Start by calculating the rise in the price level over the 16 years.

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PGAIN SOLUTIONS TO: ROGER STAIGER FROM: JAMIE ELLIOTT SUBJECT: P(GAIN) SOLUTIONS TO PROBLEMS DATE: i i 1) 26.0% 10% CC: NONE 2) 24.0% 55% 3) 9.0% 15% 4) ­7.0% 15% 5) ­28.0% 5% Problem 1 Solution E(R) 14.7% σ 2 0.0227 σ 0.1507 CV 1.0251 P(Gain) 84% E(R) (μ) = 0.26∗0.10 + 0.24∗0.55 + 0.09∗0.15 + −0.07∗0.15 )+(−0.28∗0.05 =0.026+0.132+0.0135−0.010−0.014=0.147 σ2 = 2 2 2 2 2 0.26−0.147 ) 0.10)+(0.24−0.147 ) 0.55+ 0.09−0.147 ) 0.15)+(−0.07−0.147 ) 0.15)+(−0.28−0.147 ) 0.05)=0.0227 σ = √ 0.0227=0.1507 σ 0.1507 CV = = =1.0251

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Chapter 22, Problem 37 is Solved
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Textbook: Principles of Economics
Edition: 2
Author: Steven A. Greenlaw, David Shapiro, Timothy Taylor
ISBN: 9781947172364

Since the solution to 37 from 22 chapter was answered, more than 466 students have viewed the full step-by-step answer. Principles of Economics was written by and is associated to the ISBN: 9781947172364. This full solution covers the following key subjects: . This expansive textbook survival guide covers 37 chapters, and 1291 solutions. This textbook survival guide was created for the textbook: Principles of Economics, edition: 2. The answer to “Rosalie the Retiree knows that when she retires in 16 years, her company will give her a one-time payment of $20,000. However, if the inflation rate is 6% per year, how much buying power will that $20,000 have when measured in todays dollars? Hint: Start by calculating the rise in the price level over the 16 years.” is broken down into a number of easy to follow steps, and 57 words. The full step-by-step solution to problem: 37 from chapter: 22 was answered by , our top Business solution expert on 03/16/18, 04:24PM.

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Solved: Rosalie the Retiree knows that when she retires in 16 years, her company will