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Present value with real cash flows You wish to purchase a car 4 years from now. The price of the car today is 500,000 SEK
Present value with real cash flows You wish to purchase a car 4 years from now. The price of the car today is 500,000 SEK and you believe that the price will increase by the annual inflation. Assume that the annual inflation is 2 % and that the bank offers you an annual interest rate of 1 %, how much money do you need to put in your account today in order to be able to purchase the car in 4 years time?
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