Your client has $3,200 in a stock account right now. Suppose they let it grow for 40 years, not adding anything to it. Interest compounds monthly with an annual rate of 6.2%. If the rate of inflation averages 2.7% over that time, what is the value of that investment account in today's real dollars? Answer = $ (Round to %3D

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
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Your client has $3,200 in a stock account right now.
Suppose they let it grow for 40 years, not adding
anything to it. Interest compounds monthly with an
annual rate of 6.2%. If the rate of inflation averages
2.7% over that time, what is the value of that
investment account in today's real dollars?
Answer = $
(Round to
the nearest cent/penny.)
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Transcribed Image Text:Your client has $3,200 in a stock account right now. Suppose they let it grow for 40 years, not adding anything to it. Interest compounds monthly with an annual rate of 6.2%. If the rate of inflation averages 2.7% over that time, what is the value of that investment account in today's real dollars? Answer = $ (Round to the nearest cent/penny.) Question Help: M Message instructor Add Work
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