Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 11, Problem 13P
To determine

Calculate the inflation free interest rate.

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Assuming that the inflation rate from 2018 through 2020 is 6% per year: a)  What would be the real value of a $55,000 income in each of the three years? b)  What does the real income computed for 2019 mean?
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