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Problem:

A mutual fund investment is expected to earn 8% per year for the next 25 years. If inflation will average 4% per year during this 25-year period of time,

Required:

Question: What is the compounded value (in today's dollars) of this savings vehicle when $9,000 is invested now?

Please explain in detail and show all workings.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91147517

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