A small scale mining investment is expected to generate $60,000 per year in profits over the next 15 years. If these profits are invested in a mutual fund account that earns a market interest rate of 18% per year, calculate how much the fund will be worth after the 15 years in actual dollars and in real dollars. Inflation is expected to average 6% per year over that period. Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 18% per year. In actual dollars: OA. $2,118,010 B. $6,625,790 OC. $3,657,920 OD. $1,526,320 In real dollars: OA. $6,625,790 B. $2,118,010 OC. $1,526,320 OD. $3,657,920
A small scale mining investment is expected to generate $60,000 per year in profits over the next 15 years. If these profits are invested in a mutual fund account that earns a market interest rate of 18% per year, calculate how much the fund will be worth after the 15 years in actual dollars and in real dollars. Inflation is expected to average 6% per year over that period. Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 18% per year. In actual dollars: OA. $2,118,010 B. $6,625,790 OC. $3,657,920 OD. $1,526,320 In real dollars: OA. $6,625,790 B. $2,118,010 OC. $1,526,320 OD. $3,657,920
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![A small scale mining investment is expected to generate $60,000 per year in profits over the next 15 years. If these profits are invested in a mutual fund account that earns a market interest rate of 18% per year,
calculate how much the fund will be worth after the 15 years in actual dollars and in real dollars. Inflation is expected to average 6% per year over that period.
Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year.
Click the icon to view the interest and annuity table for discrete compounding when i = 18% per year.
In actual dollars:
OA. $2,118,010
B. $6,625,790
OC. $3,657,920
OD. $1,526,320
In real dollars:
OA. $6,625,790
B. $2,118,010
OC. $1,526,320
OD. $3,657,920](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F42c4d8e1-bec9-4789-ba6c-6f6769b3df7a%2F08a352ef-0972-422a-9951-8a44543f625b%2Ft4yu32k_processed.png&w=3840&q=75)
Transcribed Image Text:A small scale mining investment is expected to generate $60,000 per year in profits over the next 15 years. If these profits are invested in a mutual fund account that earns a market interest rate of 18% per year,
calculate how much the fund will be worth after the 15 years in actual dollars and in real dollars. Inflation is expected to average 6% per year over that period.
Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year.
Click the icon to view the interest and annuity table for discrete compounding when i = 18% per year.
In actual dollars:
OA. $2,118,010
B. $6,625,790
OC. $3,657,920
OD. $1,526,320
In real dollars:
OA. $6,625,790
B. $2,118,010
OC. $1,526,320
OD. $3,657,920
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