7. What is the cost in real dollars today of spending $25,000 four years from now if your effective annual MARR = 3% and the general inflation rate is 7% per year? The nearest answer is: a. $17K b. S18K c. $19K d. $20K e. $21K

7. What is the cost in real dollars today of spending $25,000 four years from now if your effective annual MARR = 3% and the general inflation rate is 7% per year? The nearest answer is: a. $17K b. S18K c. $19K d. $20K e. $21K

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter1: Understanding Personal Finance

Section1.4: Perform Time Value Of Money Calculations

Problem 3CC

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7.
What is the cost in real dollars today of spending $25,000 four years from now if your effective
annual MARR = 3% and the general inflation rate is 7% per year? The nearest answer is:
a. $17K b. $18K
c. $19K
d. $20K e. $21K

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