Which of the following things are taken into consideration when using the aggregate demand-aggregate supply (AD-AS) model to ill
1 answer:
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Answer:
I will need to invest 64,669.73 dollars now.
Explanation:
We will calcualte the future value of the cabin considering the inflation:
Principal 150,000.00
time 15 years
inflation 0.04000
Amount 270,141.53
Then we calculate the present value of the lump sum at 15 years discounted at 10% which is the yield of the funds
Maturity 270,141.53
time 15 years
rate 0.10
PV 64,669.73
we would need to deposit 64,669.73 today to get enough cash to purchase the bcabin in 15 years.