1. The bank is paying 23.27% compounded annually. The inflation is expected to be 11.36% per year.
What is the inflation free interest rate?
Enter your answer as percentage, without the % sign. Provide 2 decimal places.
2. An economist has predicted 9.6% inflation during the next 14 years. How much will an item that presently sells for $16 bring 14 years later?
Enter your answer as follow: 123.45. Provide 2 decimal places.
3. Five years ago you invested $18749. What is the current value of that investment if you use a 5% market interest rate?