Cases 5 through 9

2. Calculate each ending wealth from beginning wealth of $1000. The holding-period (simple returns and continuously compounded returns are R and r, respectively, and the simple and continuously compounded inflation rates are l and c. BE CAREFUL: Some cases use mixed standards, e g., R and c, or r and I together. In cases with multiple years and only one return value or inflation value, use the value for all years. In cases with inflation, calculate the real value of ending wealth. (Simple returns ARE NOT the same as simple interest.) Number of Ending wealth real if inflation is given Case Returns R 4% r-0.04 R-0.05 R-0.07 ears 0.03 even years, r=0.04 odd years R-7% even years, R-3% odd years R-6%, 1-2% R-696, c-4% r-696, c:4% r-696, 1-4% 18 $2,296.01 r 1