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Suppose that $1000 is invested for 7 years at an annual effective rate of interest 6% and an inflation rate 2.7%. Determine the increase in
Suppose that $1000 is invested for 7 years at an annual effective rate of interest 6% and an inflation rate 2.7%. Determine the increase in the purchasing power at the end of 7 years after you take inflation into account.
a) 3.21% b) 13.62% c) 18.29% d) 20.35% e) 24.78%
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