ayoismeisalex
ayoismeisalex
28.01.2020 • 
Business

Instead of spending the $50 a month you receive, you decided to invest it in your money market account at your bank. assuming you will earn an average of 5% each year and inflation is forecasted to 2.5% a year, how much have you effectively earned after ten years? (hint: must use a two formulas to solve this question) in other words, after you have factored out the effects of inflation, how much purchasing power do you have?

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