Question: Please note that the answer is: 8623.08 Please show all formulas clearly. Q 12-6 The real interest rate is 6% and the inflation rate is

Please note that the answer is: 8623.08

Please show all formulas clearly.

Q 12-6 The real interest rate is 6% and the inflation rate is 4%. Allan receives a payment of 1,000 at time 1, and subsequent payments increase by 50 for 5 more years. Determine the accumulated value of these payments in nominal dollars at time 6 years. Note: "Nominal dollars" means the actual dollar amount at time 6 with the amount based on growth and inflation. Answer: $8623.08

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