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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
a. If the inflation rate is 6% per year and a person wants to earn a true (real) interest rate of 10% per year, determine the number of future dollars she has to receive 10 years from now if the present investment is $10,000.
b. How many future dollars would you need 5 years from now just to have the same buying power as $50,000 now, if the defl ation rate is 3% per year? c. If a company deposits $100,000 into an account that earns a market interest rate of 10% per year at a time when the defl ation rate is 1% per year, what will be the purchasing power of the accumulated amount (with respect to today’s dollars) at the end of 15 years?
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