Dr. Tim bought a car for $11,600 in the year 2000. Suppose instead, he invested that money at 8%. Over the 14 year period (2000 to 2014), inflation has averaged about 3%. In terms of year 2000 dollars, the money would be worth most nearly: O a. $50,400 O b. $17,700 O c. $34,100 O d. $51,500

Dr. Tim bought a car for $11,600 in the year 2000. Suppose instead, he invested that money at 8%. Over the 14 year period (2000 to 2014), inflation has averaged about 3%. In terms of year 2000 dollars, the money would be worth most nearly: O a. $50,400 O b. $17,700 O c. $34,100 O d. $51,500

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Unemployment And Inflation

Section: Chapter Questions

Problem 3.7P

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Question

Dr. Tim bought a car for $11,600 in the year 2000. Suppose instead, he invested that money at 8%. Over the 14 year period (2000 to 2014), inflation has averaged about 3%. In terms of year 2000
dollars, the money would be worth most nearly:
O a. $50,400
O b. $17,700
O c. $34,100
O d. $51,500

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