15. Liz Mulig earns $52,000 per year as a philosophy professor. She receives a raise of 2.5% in a year in which the CPI increases by 3.8%. Ignoring taxes, find the effect of the two increases on her purchasing power. [10.2] 16. James Arnosti makes $65,000 per year as an editor for a publisher. He was notified of a 1.5% raise in a year in which the CPI increased by 4%. Find the gain or loss in his purchasing power. [10.2] CHAPTER 10 Compound Interest and Inflation A note for $3500 was made at 8% per year compounded annually for 3 years. Find (a) the maturity value and (b) the present value of the note assuming 5% per year compounded semiannually. [10.3]13. 19. 20. Computers. lnc.. accepted a 2-year note for S I 2.540 in lieu of immediate payment for computer equipment sold to at local firm. Find (a) the maturity value given a 10% rate compounded annually and (ht the present value of the note at 6% per year compounded semiannually. [10.3] A business worth 34 | 80.000 is expected to grow at l2% per year compounded annually for the next 4 years. (a) Find the expected future value. (b) If funds from the sale of the busi- ness today would be placed in an account yielding 8% compounded semiannuaily. what would be the minimum acceptable price for the business at this time? [10.3] A corporation worth $40 million is expected to grow at 8% per year compounded annually for 5 years. (3) Find the future value to the nearest million. (b) The owners then propose to sell the firm and invest the proceeds in a new venture that should grow at [2% com- pounded annually t'or 4 years. Beginning with the future value from part (a) rounded to the nearest million. find the expected future value to the nearest million at the end of 4 addi- tional years. \"0.11 (ill (b) la} (h) M) (b)