6. Your company's marketing department anticipates that in 3 years the sales price for your industrial lathe will be $29,500. Today the sales price is $26,900. Determine the inflation rate associated with this price change. 7. You plan to purchase a house in 8 years, and at that time will pay $150,000. At a real interest rate of 4.50% and inflation rate of 2.60%, what is the present worth of the cost of the house?
6. Your company's marketing department anticipates that in 3 years the sales price for your industrial lathe will be $29,500. Today the sales price is $26,900. Determine the inflation rate associated with this price change. 7. You plan to purchase a house in 8 years, and at that time will pay $150,000. At a real interest rate of 4.50% and inflation rate of 2.60%, what is the present worth of the cost of the house?
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
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![6. Your company's marketing department anticipates that in 3 years the sales price for your industrial
lathe will be $29,500. Today the sales price is $26,900. Determine the inflation rate associated with this
price change.
7. You plan to purchase a house in 8 years, and at that time will pay $150,000. At a real interest rate of
4.50% and inflation rate of 2.60%, what is the present worth of the cost of the house?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4b31a6de-61b0-426b-9658-7fd3a0debe2d%2F2a46702a-5d2b-4f77-8faf-b3b14ee7157c%2Fs4idklo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:6. Your company's marketing department anticipates that in 3 years the sales price for your industrial
lathe will be $29,500. Today the sales price is $26,900. Determine the inflation rate associated with this
price change.
7. You plan to purchase a house in 8 years, and at that time will pay $150,000. At a real interest rate of
4.50% and inflation rate of 2.60%, what is the present worth of the cost of the house?
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