Show solution Roger Marquez purchases a lot for $ 40,000 cash and plans to sell it after 5 years. If he wantsan 18% interest on his investment after takıng the 6% inflation rate into account, what must behis selling price?Select one:O a. $ 126,884b. $ 122,461O c. P 127,327O d $125,721

Basics:- Nominal Interest Rate = Real Interest Rate and Inflation Rate (1 + i )…

Roger Marquez purchases a lot for $ 40,000 cash and plans to sell it after 5 years. If he wants an 18% interest on his investment after taking the 6% inflation rate into account, what must be his selling price? Select one: O a $ 126,884 O b. $ 122,461 O c.P 127,327 O d. $125,721

Roger Marquez purchases a lot for $ 40,000 cash and plans to sell it after 5 years. If he wants an 18% interest on his investment after taking the 6% inflation rate into account, what must be his selling price? Select one: O a $ 126,884 O b. $ 122,461 O c.P 127,327 O d. $125,721

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Roger Marquez purchases a lot for $ 40,000 cash and plans to sell it after 5 years. If he wants
an 18% interest on his investment after takıng the 6% inflation rate into account, what must be
his selling price?
Select one:
O a. $ 126,884
b. $ 122,461
O c. P 127,327
O d $125,721

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