» In 1980 a couple invested 10,000 for 5 years at the rate of 16% annually. During that time the rate of inflation is 5% compounded annually. How much money will he get in 1985 and how much profit is realized over the 5 years?
» In 1980 a couple invested 10,000 for 5 years at the rate of 16% annually. During that time the rate of inflation is 5% compounded annually. How much money will he get in 1985 and how much profit is realized over the 5 years?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 9PROB
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Transcribed Image Text:» In 1980 a couple invested 10,000 for 5 years at the rate of
16% annually. During that time the rate of inflation is 5%
compounded annually. How much money will he get in
1985 and how much profit is realized over the 5 years?
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