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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
10.10 A pulp and paper company is planning to set aside
$150,000 now for possibly replacing its large syn- chronous refiner motors. If the replacement isn’t needed for 5 years, how much will the company have in the account if it earns the market interest rate of 10% per year and the inflation rate is 4% per year?
10.11 In order to encourage its employees to save money for retirement, a large pharmaceutical company offers a guaranteed rate of return of 10% per year, without regard to the market interest rate. If a new engineer invests $5000 per year for 10 years at a time when the inflation rate averages 3% per year, how much will be in the account at the end of the 10-year period?
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