8-7. The incredible shrinking $50 bill in 1957 was worth $50, but in 2007 it is worth...

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8-7. The incredible shrinking $50 bill in 1957 was worth $50, but in 2007 it is worth only $6.58. (8.2)

a. What was the compounded average annual inflation rate (loss of purchasing power) during this period of time?

b. Fifty dollars invested in the stock market in 1957 was worth $1,952 in 2007. In view of your answer to Part (a), what was the annual real interest rate earned on this investment?

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Engineering Economy

ISBN: 9780134870069

17th Edition

Authors: William Sullivan, Elin Wicks, C Koelling

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Question Posted: Oct 28, 2024 06:00 AM

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8-7. The incredible shrinking $50 bill in 1957 was worth $50, but in 2007 it is worth...

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Engineering Economy

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