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An engineer invests R150,000 in a savings account that pays interest at a real 8% per year. If the inflation rate is 5%
Posted: Sat Nov 27, 2021 5:15 pm
by answerhappygod
- An Engineer Invests R150 000 In A Savings Account That Pays Interest At A Real 8 Per Year If The Inflation Rate Is 5 1 (22.15 KiB) Viewed 76 times
An engineer invests R150,000 in a savings account that pays interest at a real 8% per year. If the inflation rate is 5% per year, determine (a) the amount of money that will be accumulated in 10 years, (b) the purchasing power of the accumulated amount (in terms of today's rands/dollars), (c) the number of future rands/dollars that will have the same purchasing power as the R150,000 today, and (d) the amount to maintain purchasing power and earn a real 8% per year return.