1.) Ernie invested $5000 in an account for 3 years at 3.6% p.a. interest compounded quarterly. Inflation over the period averaged 2% per year. a. Calculate the value of the investment after 3 years....


1.) Ernie invested $5000 in an account for 3 years at 3.6% p.a. interest compounded quarterly. Inflation over the period averaged 2% per year.




a. Calculate the value of the investment after 3 years.




b. Find the real value of the investment by indexing it for inflation.



Sep 28, 2022
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