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Assume you are saving $ 1 0 , 0 0 0 that you recently inherited by depositing into a bank CD account with one year
Assume you are saving $ that you recently inherited by depositing into a bank CD account with one year until maturity. The interest rate on your deposit is and inflation is expected to be over the next year.
a How much money will you have in your bank account at the end of one year?
b What is the real interest rate you expect to earn on your deposit over the next year?
c If you are saving to buy a Mickey Mantle rookie card that currently sells for $ will you have enough money from the savings to buy it next year when your CD matures?
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