If the inflation rate is 6% per year and a person wants to earn a true (real)

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If the inflation rate is 6% per year and a person wants to earn a true (real) interest rate of 10% per year, determine the number of future dollars she has to receive 10 years from now if the present investment is $10,000.

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Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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Question Posted: Dec 17, 2012 06:24 AM

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If the inflation rate is 6% per year and a person wants to earn a true (real)

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First we need to acknowledge that we do not have a nominal interest rate Ne...View the full answer

Engineering economy

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