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Old Alfred Road

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Issue:

Business

 

Written by:

Camille M

 

Date added:

April 23, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 521

 

Was viewed:

6690 times

 

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Essay content:

In other words its real interest rate is 0%. Expenses • We have $1,500 living expenses and $500 for fun and travel. We should ask if these are real values? In other words, if the real rate at which these expenses are growing is 0%. 1.) Can he safely spend all the interest from his portfolio investment? o No, because the real value of his monthly interest is $720 = $180,000 * (...
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He physically would receive the $16,200, but its purchasing power is not the same. 3.) Suppose Mr. Road will live for 20 more years …you read the rest…How much can he afford to spend per month? o This is a possible form of our annuity using a monthly real interest rate > .048/12 = .004 ***This is assuming that Mr...
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