Question: 6. Your CEO asked you to prepare a Present worth calculation adjusted for inflation for the next 3 years. He predicts inflation to be 4.5%
6. Your CEO asked you to prepare a Present worth calculation adjusted for inflation for the next 3 years. He predicts inflation to be 4.5% per year and the real interest rate to be 12% per year The below table is what he wants you to fill out. What would be the cost in future dollars, future cost in constant value dollars and the present worth at the real interest rate after 3 years (SHOW ALL CALCULATION)? (10pts) 10, 000 lo,o 10,o With a real interest rate of 10% per year and inflation rate of 3% per year, how much must you deposit annually over 6 years to accumulate an amount of money with the same purchasing power as $1.80 today? (10pts) 7
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