23 and 24

book name : Economics Today (19th Edition)

for table 21.1 see the book

CHAPTER 21 21-22. Take a look at Figure 21-2. Explain why the figure implies that if the amount of accounting profit were to shrink to remo while the normal rate of return on investment remained unchanged, eco- nomic profit necessarily would become negative. 21-23. Take a look at Tahle 21-1. Suppose that you are planning your retirement. The appropriate interest rate for computing the present values of future dollars to be received is 8 percent, and you plan to cash in all of what you save for retirement this year in eactly 30 years. How Rota, Profits, and the Financial Environment of Business 485 many dollars would you have to save this year to ensure being able to have a total of $50,000 accumulated 30 years from now? 21-24. Reconsider Table 21-1, and assume that as in Problem 21-23, you wish to save enough this year to have $50,000 available for your planned retire- ment 30 years into the future. How many dollars would you have to save this year to ensure that a total amount of $50,000 would be accumulated 30 years into the future if the interest rate appro priate for discounting decreases to 3 percent