3. Suppose a $1,000 EOY loan payment was made today for money that was borrowed in 2021 (two years ago). If the average inflation rate has been 5% during this time, then what is the comparable value of the (2021) goods and services that can be purchased today (with $1,000) (to nearest cent)?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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3. Suppose a $1,000 EOY loan payment was made today for money that was borrowed in 2021 (two years ago). If the average inflation rate has been
5% during this time, then what is the comparable value of the (2021) goods and services that can be purchased today (with $1,000) (to nearest cent)?
Transcribed Image Text:5 pts 3. Suppose a $1,000 EOY loan payment was made today for money that was borrowed in 2021 (two years ago). If the average inflation rate has been 5% during this time, then what is the comparable value of the (2021) goods and services that can be purchased today (with $1,000) (to nearest cent)?
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