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Determine which of the following is FALSE. ( a ) The buying power of 1 + r one year later is the same as 1

Determine which of the following is FALSE.
(a) The buying power of 1+r one year later is the same as 1 now.
(b) The inflation adjusted one year growth factor is 1+i1+r
(c) The inflation adjusted rate of interest is i-r1+r
(d) The inflation adjusted rate of interest is1-ri+r(e) none of these
50,000 each is deposited at the end of years 1,2,dots,17.x each is withdrawn at the beginning of 18 th,19 th,20 th and 21 st years to make the balance 0. If i is the effective annual interest rate, which of the following can be used to solve for x?
(a)]
()i()i[()i]
()i[()i
(c)]
[()3(b)]
[()i
(e) none of these
(d)]
()i()i[()i]
()i[()i
An account is compounded annually. For a fraction of a year the simple interest i is used. If the account is closed and reopened immediately every month during a year, then the annual rate of return is
(a)i
(b)(i12)12
(c)(1+i12)12-1
(d)(1+i12)112-1
(e) none of these
One account pays interest i(4)=8% and the other pays interest at a force of . If the two accounts start with the same A(0) and ended with the same A(5), then
(a)=ln(1.04)
(b)=4ln(1.02)
(c)=ln(1.02)
(d)=2ln(1.04)
(e) none of these
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