An engineer invests R150,000 in a savings account that pays interest at a real 8% per year

Finance Nov 03, 2021

An engineer invests R150,000 in a savings account that pays interest at a real 8% per year. If the inflation rate is 5% per year, determine (a) the amount of money that will be accumulated in 10 years, (b) the purchasing power of the accumulated amount (in terms of today's rands/dollars), (c) the number of future rands/dollars that will have the same purchasing power as the R150,000 today, and (d) the amount to maintain purchasing power and earn a real 8% per year return.