1. What would a $23,000 car have cost 6 years ago if the inflation rate over that period had averaged 5% compounded annually?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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1.
What would a $23,000 car have cost 6 years ago if the inflation rate over
that period had averaged 5% compounded annually?
106
23,000 = P(1+05
P=?
4-23,000
f = 105
M = 1
+26
23,000 = P 1.34 956 41
1.340095041 1.348095641) Answer:
P=17162.95412 *-$17162,95
P=17162.95
Transcribed Image Text:1. What would a $23,000 car have cost 6 years ago if the inflation rate over that period had averaged 5% compounded annually? 106 23,000 = P(1+05 P=? 4-23,000 f = 105 M = 1 +26 23,000 = P 1.34 956 41 1.340095041 1.348095641) Answer: P=17162.95412 *-$17162,95 P=17162.95
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