Price of a national computer

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Reference no: EM131810436

The price of a National Computer 686VX computer is presently $2200. If deflation of 2% per quarter is expected on this computer, what will its price be in nominal dollars at the end of 1 year? If inflation is 4.5% per year, what will the price be in year-0 dollars? (Answer: $1942 year-0 dollars)

Reference no: EM131810436

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