Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 1 Use the following equation to find the future value of a $30,000 investment into a 20 year treasury at 2.64% ? Assume this
Question 1 Use the following equation to find the future value of a $30,000 investment into a 20 year treasury at 2.64% ? Assume this investment only compounds at a rate of once per year. Also assume we are given the nominal rate of interest. FV = PV(1 + r)" Where: FV = Future Value PV = Present Value r=rate of interest n = compounding period Question 2 Lets assume the rate of inflation is represented by the target average of roughly 2.5%. Using the same inputs, what is the real return of our 20 year treasury? Show all your work
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started