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Nominal dollars and current dollars

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Amy wants to deposit money each year for the next five years and each deposit to have $30,000 in real dollars currently and the inflation rate is 3% per year and the nominal interest rate is 9.18%. (Round off all answers to 2 decimal places)

a. What is the value 5 years later in nominal dollars and current dollars?

b. What are the values today respectively for the nominal cash flows and real cash flows?

Reference no: EM132150461

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