Question: Do fast A small scale mining investment is expected to generate $60,000 per year in profits over the next 15 years. If these profits are

Do fast

A small scale mining investment is expected to generate $60,000 per year in profits over the next 15 years. If these profits are invested in a mutual fund account that ears a market interest rate of 10% per year, calculate how much the fund will be worth after the 15 years in actual dollars and in real dollars Inflation is expected to average 6% per year over that period.

In real dollar A. $3,256,990 B. $1,906,350 C. $795,450 D. $1,181,400

In actual dollars A. $3,256,990 B. $795,450 C. $1,506,350 D. $1,181,400

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!