purchasing power of

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter22: International Financial Management
Section: Chapter Questions
Problem 2P
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The US inflation rate is steady at 6.1%. If John expects an amount of USD 200,000.00 for his
retirement in 2030, calculate the purchasing power of this amount. Will he be able to buy a
house that’s worth about USD 100,000.00 today?

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