In January of1980, a Troy ounce of gold sold for$850 (anall-time high). Over the 28 years from 1980 to2008, suppose the CPI has grown at a compounded annual rate of 3.2%.

In 2008 a Troy ounce of gold sells for $720.

a. In realterms, with 1980 as the referenceyear, what is the 2008 price of gold per ounce in 1980 purchasingpower?

b. If gold increases in value to keep pace with theCPI, how many years will it take to grow to$850 per ounce in 2008 purchasingpower?

c. What was the real interest rate earned from 1980 to 2008 on an ounce ofgold?

a. The 2008 price of gold per ounce in 1980 purchasing power is $? (Round to the nearestcent.)

b. It will take ? years. (Round to two decimalplaces.)

c. The real interest rate was ?%. (Round to two decimalplaces.)

In January of 1980, a Troy ounce of gold sold for $850 (an all-time high). Over the 28 years from 1980 to 2008, suppose the CPI has grown at a compounded annual rate of 3.2%. In 2008 a Troy ounce of gold sells for $720. a. In real terms, with 1980 as the reference year, what is the 2008 price of gold per ounce in 1980 purchasing power? b. If gold increases in value to keep pace with the CPI, how many years will it take to grow to $850 per ounce in 2008 purchasing power? c. What was the real interest rate earned from 1980 to 2008 on an ounce of gold? a. The 2008 price of gold per ounce in 1980 purchasing power is $ . (Round to the nearest cent.) b. It will take |years. (Round to two decimal places.) c. The real interest rate was | % (Round to two decimal places.)