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    Exam 8: Compound Interest: Future Value and Present Value
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    How Much Money Was Needed 15 Years Ago to Have
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How Much Money Was Needed 15 Years Ago to Have

Question 75

Question 75

Short Answer

How much money was needed 15 years ago to have the purchasing power of $1,000 today if the average (compound annual) rate of inflation has been:
a) 2%? b) 4%?

Correct Answer:

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a) $743.01...

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