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Gnoma [55]
3 years ago
5

Suppose Eileen is an avid reader and buys only comic books. Eileen deposits $3,000 in a bank account that pays an annual nominal

interest rate of 5%. Assume this interest rate is fixed—that is, it won't change over time. At the time of her deposit, a comic book is priced at $10.00.
Required:
a. Initially, the purchasing power of Eleen's $3,000 deposit is __________ comic books.
Business
1 answer:
9966 [12]3 years ago
8 0

Answer:

300 comic books

Explanation:

<em>Purchasing power of money at any point in time is the quantity of goods and services that can be acquired using the stock of money at the prevailing price level.</em>

As at the time the $3000 money was deposited, the price per book stood at $10.

Purchasing power of $3000

= $3000/$10

= 300 comic books

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