Suppose you have $200,000 cash today and you can invest it to become worth $2,000,000 in 18 years. What is the present purchasing power equivalent of this $2,000,000 when the average inflation rate over the first eight years is 6% per year, and over the last ten years it will be 7% per year? 6% per year Click the icon to view the interest and annuity table for discrete compounding when , Click the icon to view the interest and annuity table for discrete compounding when i 7% per year thousand. (Round to two decimal places.) The present purchasing power equivalent is S

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.