MATHEMATICS · Multi-part · CBSE · Mathematics · Fractions in Disguise · Fractions in Disguise
Problem
Gemma invested $4000 in an account for 5 years at 4.8% p.a. interest compounded half-yearly. Inflation over the period averaged 3% per year.
(1) Calculate the value of the investment after 5 years.
(2) Find the real value of the investment by indexing it for inflation.