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Basics of Engineering Economy 2 Chapter 10 Problem 10 52
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January 20, 2025
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Problem 10.52
If the market interest rate is 12% per year and the inflation rate is 5% per year, the
number of future dollars in year 7 that will be equivalent to $2000 now can be
determined by the relation:
a.
F = 2000(1 + 0.176)
7
b.
F = 2000/(1 + 0.176)
7
c.
F = 2000(1 + 0.120)
7
d.
F = 2000(1 + 0.198)
7