Suppose that expected inflation will be 5.0% over next 5 years, 9.5% for the 3 years...

 

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Suppose that expected inflation will be 5.0% over next 5 years, 9.5% for the 3 years after that and 3.0% the following 5 years. If you want to accumulate $26,000 at the end of this period, how much should you invest now to get a 10% real rate of return? | Suppose that expected inflation will be 5.0% over next 5 years, 9.5% for the 3 years after that and 3.0% the following 5 years. If you want to accumulate $26,000 at the end of this period, how much should you invest now to get a 10% real rate of return? |

Answer rating: 100% (QA)

To calculate the present value of the future amount we need to adjust it for inflation and discount ... View the full answer