MATHEMATICS · Multi-part · CBSE · Mathematics · Fractions in Disguise · Fractions in Disguise
Problem
Ernie invested $5000 in an account for 3 years at 3.6% p.a. interest compounded quarterly. Inflation over the period averaged 2% per year.
(1) Calculate the value of the investment after 3 years.
(2) Find the real value of the investment by indexing it for inflation.