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1, Jln. Ale taking an 8% inflation rate into account, what was his before-tax rateof return? 14-49 Ima Luckygirl recently found out that her grandfa-
1, Jln. Ale taking an 8% inflation rate into account, what was his before-tax rateof return? 14-49 Ima Luckygirl recently found out that her grandfa- ther had passed away and left her his Rocky Moun- tain Gold savings account. The only deposit was 50 years ago, when Ima's grandfather deposited $2500. If the account has earned an average rate of 10% and inflation has been 4%, answer the following: (a) How much money is now in the account in actual dollars? (b) Express the answer to part (a) in terms of the I purchasing power of dollars from 50 years ago. 14-50 Auntie Frannie wants to provide tuition for her twin nephews to attend a private school. She intends to send a check for S5000 at the end of each of the next
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