Assume "this year" is the base year used in calculating the CPI. Over the next year, the inflation rate will be 9.3%, while the nominal interest rate is 1.2% per year. What is the eal value of $2,000 received one year from now? (That is, what amount of money now gives you the same urchasing power as $2,000 in one year.) Do not write the dollar ($) sign, and use a minus (-) in front of a decrease. Round your answer to one (1) lecimal.

Assume "this year" is the base year used in calculating the CPI. Over the next year, the inflation rate will be 9.3%, while the nominal interest rate is 1.2% per year. What is the eal value of $2,000 received one year from now? (That is, what amount of money now gives you the same urchasing power as $2,000 in one year.) Do not write the dollar ($) sign, and use a minus (-) in front of a decrease. Round your answer to one (1) lecimal.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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