If the market rate today on foreign stock investments is 12% per year and the inflation rate is 5% per year, the number of future dollars seven years in the future that will have the same purchasing power as $2000 now is closest to: O $905 O $1421 O $2810 O $4420

If the market rate today on foreign stock investments is 12% per year and the inflation rate is 5% per year, the number of future dollars seven years in the future that will have the same purchasing power as $2000 now is closest to: O $905 O $1421 O $2810 O $4420

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the market rate today on foreign stock investments is 12% per year and the inflation rate is 5% per year,
the number of future dollars seven years in the future that will have the same purchasing power as $2000 now is
closest to:
O $905
O $1421
O $2810
O $4420

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