3. The actual escalated unit price of the goodsis P120. The increase in price incorporates theannual inflation projected at 5%. What is thereal percent escalation price of the goods if theold unit price was P100 three years ago?Select the correct response.:O 1.49% paO 5.73%O 1.20% paO 4.05%

Actual unit price = P 120 Unit price three years ago = P 100 Duration (n) = 3 years Let the nominal…

Answered: 3. The actual escalated unit price of…

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

Section: Chapter Questions

Problem 1PS

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Similar questions

General price inflation is estimated to be 3% for the next 5 years, 5 % the 5 years after that, and 8% the following 5 years. If you invest $10,000 at 10% for those 15 years, what is the future worth of your investment in Year-0-dollars at that time? No excel Please and thank you
6. XYZ has a selling price of 400. If its selling price is expected to decline at a rate 10% per annum due to obsolescence, what will be its selling price after 5 yrs? A. 213.10 B.200.00 C.249.50 D.236.20
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Please help me stepwise sir thanks a lot. For both the alternative find and also tell which is best.
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