a) Mr. Jackson invested $15000 into an account for 8 years at 3.8% interest compounded quarterly. Inflation over that time was 2% averaged per year. What is the value of his investment after 8 years? b) Find the real value of the investment by taking into account inflation over that time. Show work.
a) Mr. Jackson invested $15000 into an account for 8 years at 3.8% interest compounded quarterly. Inflation over that time was 2% averaged per year. What is the value of his investment after 8 years? b) Find the real value of the investment by taking into account inflation over that time. Show work.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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a) Mr. Jackson invested $15000 into an account for 8 years at 3.8% interest compounded quarterly. Inflation over that time was 2% averaged per year. What is the value of his investment after 8 years?
b) Find the real value of the investment by taking into account inflation over that time.
Show work.
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