The incredible shrinking $50 bill in 1957 was worth $50, but in 2007 it is worth only
Question:
The incredible shrinking $50 bill in 1957 was worth $50, but in 2007 it is worth only $6.58.
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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a 658 50FP i 50 or i 397 annual average ...View the full answer
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Related Book For 
Engineering Economy
ISBN: 978-0133439274
16th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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