You buy a new 4K TV today for ( 1,000), paying half today and the remaining half
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You buy a new 4K TV today for \(€ 1,000\), paying half today and the remaining half in one year. If the inflation rate is \(2 \%\) and the nominal interest rate is \(3 \%\), what is the present value of your TV? A
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The present value of your payment today is 500 With inflatio...View the full answer
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