Engineering Economy Plus Mylab Engineering With Pe Format: Cloth Bound With Access Card
Engineering Economy Plus Mylab Engineering With Pe Format: Cloth Bound With Access Card
17th Edition
ISBN: 9780134873206
Author: Sullivan, William G.^wicks, Elin M.^koelling, C. P
Publisher: Prentice Hall
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Chapter 8, Problem 15P
To determine

Calculate the future value.

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The future amount of $500,000 for a period of 8 years is equal to $400,000, considering money is worth 8% per year. What is the inflation rate?
You would like to buy a house that is currently on the market at $85,000, but you cannot afford it right now. However, you think that you would be able to buy it after 4 years. If the expected inflation rate as applied to the pricepri this house is 6% per year, what is its expected price after four years?
"You invest $75 immediately for 9 years. The inflation rate is 5.1%. At the end of 9 years, you receive $230.78 in actual (year-9) dollars. What is the inflation-free internal rate of return? Enter your answer as a percentage rounded to the nearest tenth of a percent."
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