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From 2021 to 2030, annual inflation rate is expected to be 10% per year. Farmbank has a deposit account which pays an interest at
From 2021 to 2030, annual inflation rate is expected to be 10% per year. Farmbank has a deposit account which pays an interest at a real 4% per year. a) How much money should you place into this deposit account today to accumulate 50.000 in January 2028: b) In terms of today's dollars what is the purchasing power of the accumulated amount 50.000 (accumulated in Jan-2028)? c) Another bank (Fibabank) offers to pay the same amount (50.000 ) in January 2028, if you place 17.691 today. What is the real interest rate offered by Fibabank? d) The number of future dollars (in Jan-2028) that will have the same purchasing power as 17.691 today in Fibabank?
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