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16-12-2022
Business

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An engineer deposits $10,000 into an account when the market interest rate is 10% per year and the inflation rate is 5% per year. If the account is left undisturbed for 5 years, (a) How much money will be in the account? (b) What will be the purchasing power in terms of todayâs dollars? (c) What is the real rate of return on the account?

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