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(Solved): You will deposit money into a bank account according to the following schedule 1 3 today year from ...




You will deposit money into a bank account according to the following schedule
1
3
today
year from today
years from today
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You will deposit money into a bank account according to the following schedule 1 3 today year from today years from today years from today years from today $225,000 $53,500 $49.750 $21,200 $112,050 4 6 After 6 years from today, what will be the purchasing power of the money in your bank account, expressed in today's dollars? Your bank pays Interest at 2.5000% compounded yearly and inflation is expected to be 1.1250% per year.


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Introduction The purchasing power of money is calculated by dividing the money supply by rate of inflation. If
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