A small scale mining investment is expected to generate $40,000 per year in profits over the next 12 years. If these profits are invested in a mutual fund account that earns a market interest rate of 10% per year, calculate how much the fund will be worth after the 12 years in actual dollace and in real dollars Inflation is expected to average 4% per year over that period Click the icon to view the interest and annuity table for discrete compounding when i=4% per year Click the icon to view the interest and annuity table for discrete compounding when /-10% per year. In actual dollars OA. $534,260 OB. $665,770 OC. $855,370 OD. $1,117,980 In real dollars OA. $534,260 OB. $855,370 OC. $1,117,980 OD $665,770
A small scale mining investment is expected to generate $40,000 per year in profits over the next 12 years. If these profits are invested in a mutual fund account that earns a market interest rate of 10% per year, calculate how much the fund will be worth after the 12 years in actual dollace and in real dollars Inflation is expected to average 4% per year over that period Click the icon to view the interest and annuity table for discrete compounding when i=4% per year Click the icon to view the interest and annuity table for discrete compounding when /-10% per year. In actual dollars OA. $534,260 OB. $665,770 OC. $855,370 OD. $1,117,980 In real dollars OA. $534,260 OB. $855,370 OC. $1,117,980 OD $665,770
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A small scale mining investment is expected to generate $40,000 per year in profits over the next 12 years. If these profits are invested in a mutual fund account that
earns a market interest rate of 10% per year, calculate how much the fund will be worth after the 12 years in actual dollars and in real dollars Inflation is expected to
average 4% per year over that period
Click the icon to view the interest and annuity table for discrete compounding when /=4% per year
Click the icon to view the interest and annuity table for discrete compounding when /= 10% per year.
In actual dollars
OA. $534,260
OB. $665,770
OC. $855,370
OD. $1,117,980
In real dollars
OA. $534,260
OB. $855,370
OC. $1,117,980
OD $665,770
CETTE
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