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Today you make an investment of $ 500 that pays 10% per year. If inflation is 2.5% per year, how much will you have in
Today you make an investment of $ 500 that pays 10% per year. If inflation is 2.5% per year, how much will you have in the account at the end of 20 years in current dollars and how much is the purchasing power based on year 0 (real dollars) of the money you have in the account at the end of 20 years.
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Current dollars at the end of year 20 will be $ ____?____ The purchasing power of what is in the account at the end of year 20, based on year 0 (real dollars) is $ ___?____
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