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Answer to Question #329547 in Mechanical Engineering for Jhonny
Question #329547
3.) A machine costs P20,000 today. If inflation rate is 6% per year and interest is 10% per
year, what will be the appropriate future value of the machine, adjusted for inflation, in
five years?
Expert's answer
if = 0.10 + 0.06 + (0.10)(0.06) = 0.166 or 16.6%
F = 20 000(F/P, if%, 5)
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