Find the annual worth equivalent in actual-dollars from year 1 to 8 of an investment of...
Homework Answers
The inflation adjusted interest rate is 9% + 5.5% which equals 14.5%.
The annual worth equivalent in actual-dollars can be calculated by the following formula:
Where A is the amount of investment, r is the inflation adjusted interest rate and n is the number of years.
Putting the values:
So, the annual worth equivalent in actual-dollars is $6,137.55 (approximately).
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Find the annual worth equivalent in actual-dollars from year 1 to 8
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