Question
You want to deposit money each year for the next five years and each deposit to have $30,000 in real dollars currently and the inflation
You want to deposit money each year for the next five years and each deposit to have
$30,000 in real dollars currently and the inflation rate is 3% per year and the nominal
interest rate is 5.06%.
a) What is the value 5 years later in nominal dollars and real dollars (Show
Calculations)?
b) What is the value today in nominal dollars and in real dollars (Show Calculations)?
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Financial Modeling
Authors: Simon Benninga
4th Edition
0262027283, 9780262027281
