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You deposited $10,000 today into a saving account for 5 years with a market rate of 8% per year. The expected inflation rate for the next 5 years is 2% per year. The purchasing power of the amount of money accumulated in this account 5 years from now is equivalent to the purchasing power of how much money today? 14,028 13,308 12,484 10,980

You deposited $10,000 today into a saving account for 5 years with a market rate of 8% per year. The expected inflation rate for the next 5 years is 2% per year. The purchasing power of the amount of money accumulated in this account 5 years from now is equivalent to the purchasing power of how much money today? 14,028 13,308 12,484 10,980

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Question 8 You deposited $10,000 today into a saving account for 5 years with a market rate of 8% per year. The expected inflation rate for the next 5 years is 2% per year. The purchasing power of the amount of money accumulated in this account 5 years from now is equivalent to the purchasing power of how much money today? 14,028 13,308 12,484 10,980
Transcribed Image Text:Question 8 You deposited $10,000 today into a saving account for 5 years with a market rate of 8% per year. The expected inflation rate for the next 5 years is 2% per year. The purchasing power of the amount of money accumulated in this account 5 years from now is equivalent to the purchasing power of how much money today? 14,028 13,308 12,484 10,980
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