How much would they require to invest today at base time

Reference no: EM13684362

For the next three years, measured in today's dollars (real dollars), a family anticipates buying $5,000 worth of groceries each year. Inflation is expected to be three percent per year during this period. The market interest rate is six percent compounded annually. If the family wanted to invest money today to cover the cost of groceries through this period, how much would they require to invest today at base time (b=0)?

Reference no: EM13684362

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