Your best friend currently makes $60,000 per year at his job. He tells you that, at generally grows at a rate of 4 percent per year. Your friend can expect to make $120,000 per year in years.
Your best friend currently makes $60,000 per year at his job. He tells you that, at generally grows at a rate of 4 percent per year. Your friend can expect to make $120,000 per year in years.
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.3P
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Question 08 M
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Transcribed Image Text:Your best friend currently makes $60,000 per year at his job. He tells you that, at his firm, salary
generally grows at a rate of 4 percent per year.
Your friend can expect to make $120,000 per year in
years.
Transcribed Image Text:When Jade made a loan to his brother Floyd, he charged an interest rate of 8 percent and expected
inflation to be 4.5 percent.
From this we can guess Jade wanted a real return of
percent.
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