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13. Teddy invested 89000 USD in an account that pays a nominal annual interest rate of 9%, compounded monthly. This amount is invested for
13. Teddy invested 89000 USD in an account that pays a nominal annual interest rate of 9%, compounded monthly. This amount is invested for 6 years and the inflation rate in these 6 years is i%. (a) Find the real interest rate per year, giving the answer in terms of i and correct to 5 decimal places. [3] It is given that the real value of amount of money after 6 years is 118000 USD. (b) Using the answer in (a), find the value of i.. [3]
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