If he could buy a TV 40 years ago for $300, what would a comparable one cost today if the consumer electronics inflation rate is -3 percent? $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±1.
If he could buy a TV 40 years ago for $300, what would a comparable one cost today if the consumer electronics inflation rate is -3 percent? $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±1.
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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Transcribed Image Text:If he could buy a TV 40 years ago for $300, what
would a comparable one cost today if the
consumer electronics inflation rate is -3
percent? $
Carry all interim calculations to 5 decimal
places and then round your final answer to
the nearest dollar. The tolerance is ±1.
Transcribed Image Text:Padayappa has now retired after 40 years of
employment. He just made an annual deposit to his
investment portfolio and realized he has $2,400,000
(not counting home, cars, furniture, etc.). His money
has been earning 7 percent per year, and inflation
has been running 4 percent per year over the past 40
years.
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