. An engineer purchased a bond for ₱1M. This pays an interest of ₱50,000.00 each year for 20 years, thereafter on the maturity, will return the original investment. If there is a 2% annual inflation during this period, what rate of return will the engineer receive after considering the effect of inflation?
. An engineer purchased a bond for ₱1M. This pays an interest of ₱50,000.00 each year for 20 years, thereafter on the maturity, will return the original investment. If there is a 2% annual inflation during this period, what rate of return will the engineer receive after considering the effect of inflation?
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
5th Edition
ISBN:9781305084766
Author:Saeed Moaveni
Publisher:Saeed Moaveni
Chapter20: Engineering Economics
Section: Chapter Questions
Problem 46P
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1. An engineer purchased a bond for ₱1M. This pays an interest of ₱50,000.00 each year for 20 years, thereafter on the maturity, will return the original investment. If there is a 2% annual inflation during this period, what rate of return will the engineer receive after considering the effect of inflation?
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