Future value of investment

Aug 10th, 2015
Business & Finance
Price: $10 USD

Question description

You are planning to invest $2,500 today for three years at a nominal interest rate of 9 percent with annual compounding.

A. What would be the future value of your investment?

B. Now assume that inflation is expected to be 3 percent per year over the same three year period. What would be the investment's future value in terms of purchasing power?

C. What would be the investment's future value in terms of purchasing power if inflation occurs at a 9 percent annual rate? 

Tutor Answer

(Top Tutor) Daniel C.
School: University of Virginia

Studypool has helped 1,244,100 students

Review from our student for this Answer

Aug 10th, 2015
"Outstanding Job!!!!"
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1821 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors