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Calculate an AW of an investment while considering inflation For a present sum of $800,000, determine the annual worth (in then-current dollars) in years 1 through 4 if the market interest rate is 12% per year and the inflation rate is 4% per year The annual worth is $
Calculate an AW of an investment while considering inflation For a present sum of $800,000, determine the annual worth (in then-current dollars) in years 1 through 4 if the market interest rate is 12% per year and the inflation rate is 4% per year The annual worth is $
Expert Solution
AW in terms of then current dollars = 800000*(A/P,12%,4)
= 800000*0.329234
= 263387.20 ~ 263387
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