Twenty years ago a benefactor invested $50,000 for you. What is the current actual value...
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Twenty years ago a benefactor invested $50,000 for you. What is the current actual value of that investment today if the money was invested in a fund with a 6% market interest rate?
Part A: Identify the correct Function Notation for this scenario.
Group of answer choices
5000 (1+0.06)
50,000(F/P, 6%, 20)
50,000(P/F, 6%, 20)
50,000(1-0.06)^20
B: Provide the answer from part "A"?
Twenty years ago a benefactor invested $50,000 for you. If the inflation rate is 2.5% per year, what is the constant (real, inflation-free) dollar value of your investment today?
Question 2 Part C: Identify the correct Function Notation for this scenario.
Group of answer choices
50000(P/F, 3.41%, 20)
50000(F/P, 6%, 20)
(answer from Part B)*(P/F, 3.41%, 20)
(answer from Part B)*(P/F, 2.5%, 20)
Part D: Provide the constant (real, inflation-free) dollar value of your investment today.
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