Engineering Economy
Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 8, Problem 22P

(a):

To determine

Calculate the present value.

(b):

To determine

Calculate the new present value.

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In​ 1923, a certain country underwent one of the worst periods in history of​ hyperinflation, which is extraordinarily large inflation in prices. At the peak of the​ hyperinflation, prices rose 34,000​% per month. At this​ rate, by what percentage would prices have risen in 1​ year? In 1​ day? (Assume 30 days per​ month.) The annual inflation rate is ×10​%. ​(Type whole​ numbers.)   The daily inflation rate is nothing​%. ​(Round to the nearest whole number as​ needed.)
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