Suppose you loaned your grandmother $1000 today. You let her have the money for 1% interest...
Homework Answers
Grandmother will give amount=P(1+r)t=1000(1.01)2=1020.1
and inflation is 2% in 2 yearr. Thus net increase in price=4%
new price=1.04old price
Thus purchasing power=1020.1/1.04=980.86
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Suppose you loaned your grandmother $1000 today. You let her
have the money for 1% interest...
QUESTION 5 Your grandmother left you $24,108 in her will. If you invest this money and...
QUESTION 5 Your grandmother left you $24,108 in her will. If you invest this money and leave it in an account that return 0.067 per year, how much will you have in 40 years?
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6) Suppose you save money at a bank that pays 3% per year in simple interest....
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Suppose you have $100,000 cash today and you can invest it to become a millionaire in...
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QUESTION 5 Your grandmother left you $24,108 in her will. If you invest this money and leave it in an account that return 0.067 per year, how much will you have in 40 years?
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