In 1924 Mr. O’Leary buried $1000 worth of quarters in his backyard. Over the years he had always thought that the money would be a nice nest egg to give to his first grandchild. His first granddaughter, Gabrielle, arrived in 1994. From 1924 to 1994, inflation averaged 4.5%, the stock market increased an average of 15% per year, and investments in government bonds averaged 6.5% return per year. What was the relative purchasing power of the jar of quarters that Mr. O’Leary gave to his granddaughter Gabrielle at birth? What might have been a better choice for his “backyard investment”?
In 1924 Mr. O’Leary buried $1000 worth of quarters in his backyard. Over the years he had always thought that the money would be a nice nest egg to give to his first grandchild. His first granddaughter, Gabrielle, arrived in 1994. From 1924 to 1994, inflation averaged 4.5%, the stock market increased an average of 15% per year, and investments in government bonds averaged 6.5% return per year. What was the relative purchasing power of the jar of quarters that Mr. O’Leary gave to his granddaughter Gabrielle at birth? What might have been a better choice for his “backyard investment”?
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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In 1924 Mr. O’Leary buried $1000 worth of quarters in his backyard. Over the years he had always thought that the money would be a nice nest egg to give to his first grandchild. His first granddaughter, Gabrielle, arrived in 1994. From 1924 to 1994, inflation averaged 4.5%, the stock market increased an average of 15% per year, and investments in government bonds averaged 6.5% return per year. What was the relative purchasing power of the jar of quarters that Mr. O’Leary gave to his granddaughter Gabrielle at birth? What might have been a better choice for his “backyard investment”?
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