5/ If you put $500 in the bank every month, and earn 2.5% interest, and inflation...

Question

Question

5/ If you put $500 in the bank every month, and earn 2.5% interest, and inflation is an average of 2%, how much will you have

Answer 1

Answer #1

Amount in the bank in 10 years=500/(2.5%/12)*((1+2.5%/12)^(12*10)-1)
=68085.97012

Amount worth in today's dollars=68085.97012/(1+2%/12)^(12*10)=55753.35873

Answer 2

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