You plan on depositing $10,000 a year in real terms into your investment account for the next

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You plan on depositing $10,000 a year in real terms into your investment account for the next four years. The relevant nominal discount rate is 7.5% and the inflation rate is 4.2%.

What are these deposits worth in today's dollars? Show all the calculations by which you came up with the final answer.

Related Book For answer-question

OM operations management

ISBN: 978-1285451374

5th edition

Authors: David Alan Collier, James R. Evans

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Posted Date: Oct 08, 2018 12:23 AM

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You plan on depositing $10,000 a year in real terms into your investment account for the next

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1nominal rate 1real rate1inflation rate real ra... View the full answer

OM operations management

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