SOLUTION: Inflation is running 2% per year when you deposit $1000 in an account earning interest of 13% per year compounded annually. In constant dollars, how much money will you have two ye

Question 370591: Inflation is running 2% per year when you deposit $1000 in an account earning interest of 13% per year compounded annually. In constant dollars, how much money will you have two years from now? (Hint: First calculate the value of your account in two years' time, and then find its present value based on the inflation rate. Round your answer to the nearest cent.)
$ 1
Answer by robertb(5830) (Show Source): You can put this solution on YOUR website!
Not a finance guy, but I understand some of the terms. If there is 0 inflation for the next 2 years, then the amount in the account is . If there is 2% inflation per year, then the value is .
RELATED QUESTIONS
You deposit $1000 each year into an account earning 2% interest compounded annually. How... (answered by rfer)

You deposit $1000 each year into an account earning 2% interest compounded annually. How... (answered by ikleyn)

You deposit $1000 at the end of each year into an account earning 4% interest compounded... (answered by ikleyn)

You deposit $9,200 in a 2-year certificate of deposit (CD) earning 2.4% annual interest... (answered by Boreal)

You deposit $3000 each year into an account earning 2% interest compounded annually. How... (answered by Theo,MathTherapy)

You deposit $5000 each year into an account earning 2% interest compounded annually. How (answered by ikleyn)

You deposit $5000 each year into an account earning 2% interest compounded annually how... (answered by ikleyn)

You deposit $2000 each year into an account earning 2% interest compounded annually.... (answered by CubeyThePenguin,ikleyn)

You deposit $3000 at the beginning of each year into an account earning 6% interest... (answered by ikleyn)