Your pension is $8,000 per month when you the next year, inflation is 1%. If your pension is indexed to inflation, what is the nominal value of your monthly pension after this second year, in dollars?

Your pension is $8,000 per month when you the next year, inflation is 1%. If your pension is indexed to inflation, what is the nominal value of your monthly pension after this second year, in dollars?

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

D
Your pension is $8,000 per month when you retire. In the first year after you retire, inflation is 2%. In
the next year, inflation is 1%. If your pension is indexed to inflation, what is the nominal value of your
monthly pension after this second year, in dollars?
Remember: Round to whole cents, and do no enter the dollar sign. If the answer is $93.625, enter
93.63.
8.241.6

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