Purchasing power of dollars

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Reference no: EM131810829

Ima Luckygirl recently found out that her grandfather had passed away and left her his Rocky Mountain Gold savings account. The only deposit was 50 years ago, when Ima's grandfather deposited $2500. If the account has earned an average rate of 10% and inflation has been 4%, answer the following:

(a) How much money is now in the accounting actual dollars?

(b) Express the answer to part (a) in terms of the purchasing power of dollars from 50 years ago.

Reference no: EM131810829

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