Calculate the present value

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12. What is the present value of $1,000 to be received 10 years from now if the required real rate of return is 3% compounded annually and the expected rate of inflation is 5% compounded annually?

13. What is the present value of $1,000 to be received 1 year from now if the required real rate of return is 4% and the expected rate of inflation is 3%?

 

Reference no: EM1359552

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