An investment pays $15,000 in five years.
1) If inflation is 5% per year, what is the real value of $15,000 in today's dollars?
2) If inflation is 5% per year and the real MARR is 12%, what is the present worth?
3) What current dollar MARR(%) is equivalent to a 12% real MARR when inflation is 5%?
Problem 1.a:
An investment pays $15,000 in five years.
If inflation is 5 percent per year, what is the real value of the $15,000 in today's dollars?
Answer:
Check
Problem 1.b:
If inflation is 5 percent and the real MARR is 12 percent, what is the present worth?
Answer:
Check
Problem 1.c:
What current dollar MARR (%) is equivalent to a 12 percent real MARR when inflation is 5 percent?
Answer:
Check