3. A man desires to have P3M money in his savings when he retires after 25 years. This has amount in the present purchasing power. If the expected average inflation rate is 7% per year and the savings earns 5.5%, what lump sum of money should he invest now?
3. A man desires to have P3M money in his savings when he retires after 25 years. This has amount in the present purchasing power. If the expected average inflation rate is 7% per year and the savings earns 5.5%, what lump sum of money should he invest now?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 1QTD
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3. A man desires to have P3M money in his savings when he retires after 25
years. This has amount in the present
inflation rate is 7% per year and the savings earns 5.5%, what lump sum of
money should he invest now?
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