Padayappa has now retired after 40 years of employment. he just made an annual deposit to his investment portfolio and realized he has $1,700,000 (not counting home, cars, furniture, his money has been earning 7 percent per year, and inflation has been running 4 percent per year over the past 40 years.
1. what equal amount of money did he put into his investment at the end of each year?
2. what is the buying power of his $1,700,000 in terms of a base 40 years ago? $
3. what would a comparable one cost today if the consumer electronics inflation rate is -3 percent?
Answers: 1
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