Georgina invested 20 , 000 6.2 % 3 1.8 %$ per year over this time.

MATHEMATICS · Multi-part · A Level · Mathematics · Exponentials and logarithms · Exponentials and logarithms

Problem

Georgina invested $20,000\$20{,}000 in an account which paid 6.2%6.2\% p.a. interest, compounded monthly for 33 years. Inflation averaged 1.8%1.8\% per year over this time. (1) Calculate the future value of the investment. (2) Find the real value of the investment.

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