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
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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 .
