10. FutureValue?
Future Value = Amount Today x Factor
$161 = $100 x 1.61
Future Value is compounding
Future Value is multiplying
11. PresentValue?
Present Value = Future Amount ÷ Factor
Present Value = $500 ÷ 1.61
$310.56 = $500 ÷ 1.61
Present Value is discounting
Present Value is dividing
12. Finance
Unknown - Present Value or Future Value?
Must know rate and number of periods
Compute Factor with formula
(1+r)n
If FV multiply
If PV divide
35. Two Surveys
The Current Population Survey (CPS) "household
survey" Sample of 60,000 households.
The Current Employment Statistics Survey (CES):
"payroll survey" sample of 160,000 businesses and
government agencies that represent 400,000 individual
employees.
37. Labor Force Participation Rate
Labor Force Participation Rate (LFPR) = 900 ÷ 1300
Labor Force Participation Rate (LFPR) = .692 or 69.2%
Adults 16+ In the Labor Force
900
Not in the Labor Force
400
Labor Force Participation Rate (LFPR) = In the Labor Force ÷ Adults
38. Unemployment Rate
In the Labor Force Employed
850
Unemployed
50
Unemployment Rate = 50 ÷ 900
Unemployment Rate = .056 or 5.6%
Unemployment Rate = Unemployed ÷ Labor Force
Labor Force = Employed + Unemployed
39. 3,000 people live in Pooleynesia. There are
250 people under 16. 450 people are not
in the labor force. 230 people are
unemployed.
1. What is the Labor Force Participation
Rate?
2. What is the Unemployment Rate?
40. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force 450
In the Labor Force 2,300 83.6%
Labor Force Participation Rate
Labor Force ÷ Adults
Employed 2,070
Unemployed 230 10.0%
Unemployment Rate
Unemployed ÷ Labor Force
42. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?
10%
90%
4,500
5,000
500
4,500 ÷ .90 = 5,000
43. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?
5%
95%
47,500
50,000
2,500
2,500 ÷ .05 = 50,000
44. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?
3%
97%
19,400
20,000
600
19,400 ÷ .97 = 20,000
20,000 ÷ 30,000 = .67 or 67%
45. 110,400 people are employed. The
unemployment rate is 8 percent.
1. How many are in the Labor Force?
2. How many are Unemployed?
46. 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Y a
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N
1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
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