A diamond ring will be worth P35,000 in 2023. How much was it when it was bought in2019 if the annual inflation and interest rates for the period are 7% and 9%,respectively?

here we calculate the present worth of ring in 2019 which are as follow-

Answered: A diamond ring will be worth P35,000 in…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A diamond ring will be worth P35,000 in 2023. How much was it when it was bought in 2019 if the annual inflation and interest rates for the period are 7% and 9%, respectively?