Question
Continental Airlines operates in and out of many countries. Country A has a low inflation rate of 4.4% per year, while country B has a
Continental Airlines operates in and out of many countries. Country A has a low inflation rate of 4.4% per year, while country B has a high rate of 32% per year. A $1 million fund is maintained in each country for emergency purchases to repair disabled aircraft. Use a formula to determine the purchasing power after 2, 4, and 5 years if the funds are not utilized.
Enter your answer in thousands of dollars and not millions.
Country A:
The purchasing power after 2 years will be $ .
The purchasing power after 4 years will be $ .
The purchasing power after 5 years will be $ .
Country B:
The purchasing power after 2 years will be $ .
The purchasing power after 4 years will be $ .
The purchasing power after 5 years will be $ .
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