Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i cant figure these out 17. Assume the real rate of interest is 2.00% and the inflation rate is 8.00%. What is the value today

i cant figure these out image text in transcribed
17. Assume the real rate of interest is 2.00% and the inflation rate is 8.00%. What is the value today of receiving 12,895.00 in 12 years? a. $4,037.70 b. $4,612,23 c. $5,053.00 d. $5,661.71 e. $6,242.45 18. Suppose you deposit $1,059.00 into an account 5 years from today. Exactly 18 years from today the account is worth $1,440.00. What was the account's interest rate? a. 2.392% b. 2.547% c. 2.714% d. 2.833% e. 2,219%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Basics 20 Minute Manager

Authors: Harvard Business Review

1st Edition

1625270852, 978-1625270856

More Books

Students also viewed these Finance questions

Question

What Causes Changes in Unemployment over the Long Run

Answered: 1 week ago