Calculate the ratio of annual consumption

Assignment Help Macroeconomics
Reference no: EM1368662

Assume that Jim goes to work at age 25, earns an average $40,000 a year for 40 years. He inherits $320,000 when he starts working. He expects to live to be 75.

(A) Calculate on average how much Jim consumes per year, the ratio of his annual consumption to annual income, and his annual savings rate.

(B) Suppose now that Jim learns he can expect to live to be 85. If Jim does not change his retirement age, compute Jim's new annual consumption, as well as the new ratio of annual consumption to annual income, and his new annual savings plan.

 

Reference no: EM1368662

Questions Cloud

Show the flexibility in hr management beneficial : How is flexibility in human resources management beneficial? How is it detrimental? What are the greatest challenges in hiring and firing employees?
Analyzing marginal rate of substitution : Let commodity 1st be bottled water, measured in gallons. Commodity 2nd denotes plain tap water, also measured in gallons.
Prepare a presentation for the chamber of commerce : Prepare a presentation for the Chamber of Commerce of an area of your choice and Purpose: To give business leaders an idea of what the economy may look like based on recent history and expected future conditions
Calculate m mod p in rsa cryptosystem : Assume that instead of using composite N = pq in RSA cryptosystem, we simply use prime modulus p. Calculate m mod p. Justify correctness and analyze running time of decryption algorithm.
Calculate the ratio of annual consumption : Assume that Jim goes to work at age twenty-five, earns an average $40,000 a year for 40 years. He inherits $320,000 when he starts working. He expects to live to be 75.
Determine future value of savings : You are considering to save some money. Out of your yearly income you will deposit a fixed amount per semester at a nominal rate of 8 percent per year compounded each 6 months during 5 years.
Show the negotiation and self portrayal : Show how much you think people portrayed themselves accurately, as opposed to portraying themselves in the way they want other people to believe.
Program to input name-weight and price of item : The program must input name and price of item and its weight in pounds and ounces. Then it must determine and display unit price (the price per ounce) of the item.
Find information on gdp and its components : Find information on GDP and its components and calculate the percentage of GDP for the following components for 1950, 1980 and 2005:

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Tax impact on labour supply curve and short run

Describe (in a sentence or two) the short run profit maximization condition when labour is the only variable input? What will happen to the labour demand if price of the output goes up?

  Walmart has any special foreign exchange problems

Walmart has any special foreign exchange problems resulting from its strategic stance payment in USD, and what alternative policies the company could adopt in the event of such problems.

  Ellucidate what happens to the price of a bond

Ellucidate what happens to the price of a bond that pays a fixed percent of the face value every year when interest rates in the economy increase.

  Illustrate what is an investment schedule and how

Illustrate what is an investment schedule and how does it differ from an investment demand curve.

  Elucidate three manufacturing companies that experienced

Elucidate three manufacturing companies that experienced large percentage increases in the number of firms between 1997 and 2002.

  Observe the characteristics which influenced the buying

Observe the characteristics which influenced the buying behavior of each person interviewed. Based on the people interviewed

  Describe their organizational structure

Describe their organizational structure and what market entry strategies each of these companies are currently using.

  If your worker stated that they would match

If your worker stated that they would match your contributions up to 50 percent, and how much would you contribute.

  Expected value of the company in one year

What is the expected value of the company in one year, with and without expansion? Would the company's stockholders be better off with or without expansion? Explain. What is the expected value of the company's debt in one year, with or without expa..

  Illustrate hat are the positives and negatives of protection

Illustrate hat are the positives and negatives of protectionist trade policies on the part of the federal government.

  Explain how changing interest rates will affect

Explain how changing interest rates will affect investment spending, equilibrium output, and prices. Also, could do a brief discussion of the money multiplier and how it relates to the Fed's activities.

  Evaluation of decisions

The FCC has hired you as a consultant to design an auction to sell wireless spectrum rights. The FCC indicates that its goal of using auctions to sell these spectrum rights is to generate revenue.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd