Five years ago, an industrial engineer deposited $10,000 into an account and left it undisturbed until now.
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Five years ago, an industrial engineer deposited $10,000 into an account and left it undisturbed until now. The account is now worth $25,000.
(a) What was the overall ROR during the 5 years?
(b) If the inflation over that period was 4% per year, what was the real ROR?
(c) What is the buying power of the $25,000 now compared to the buying power 5 years ago?
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