For a present sum of $620,000, determine the annual worth (in then-current dollars) in years 1 through 7 if the market interest rate is 12% per year and the inflation rate is 5% per year.The annual worth is $?

For a present sum of $620,000, determine the annual worth (in then-current dollars) in years 1 through 7 if the market interest rate is 12% per year and the inflation rate is 5% per year.The annual worth is $?

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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