Determine the purchasing power in terms of year-zero dollars

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If the account increased at a market rate of 15% per year and inflation averaged 3% per year over the entire deposit period, determine the purchasing power in terms of year-zero dollars immediately after the last deposit in year 17. Year 0 = $5000: Year 3 = $8000: Year 4 = $9000 : Year 7 = 15000: Year 11 = 16000: Year 17 = 20000

Reference no: EM13183376

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