Ford Martinez
04/27/2023 · Middle School

(e) Feesty years ago, John deposited R5 000 in a bank paying him \( 3 \% \) per annun compound interes. The average inflation rate over the forty years was \( 6 \% \). (1) How much money will he have saved after forty years? (2) Calculate the buying power of R5 000 after forty years. (3) Comment on the value of John's savings affer forty years.

UpStudy ThothAI Solution

Tutor-Verified Answer

Quick Answer

1. John will have saved approximately R16,310.19 after forty years. 2. The buying power of R5,000 after forty years, considering inflation, is approximately R486.11. 3. John's savings have increased in nominal value but decreased in real value due to inflation.

Step-by-step Solution

Elevate Your Learning
Unlock full answers and more with UpStudy Premium
Get AI Assistant
Answered by UpStudy AI and reviewed by a Professional Tutor
UpStudy ThothAI
Self-Developed and Ever-Improving
Thoth AI product is constantly being upgraded and optimized.
Covers All Major Subjects
Capable of handling homework in math, chemistry, biology, physics, and more.
Instant and Accurate
Provides immediate and precise solutions and guidance.
Try Now
Ask Tutors
Ask AI
10x
Fastest way to Get Answers & Solutions
By text

Enter your question here…

By image
Re-Upload
Uploaded Files
xxxx.png0%
Submit
📸 STUDY CAN BE A REAL STRUGGLE
Why Not UpStudy It?
Select your plan below
Premium

You can enjoy

  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to answer and
    solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic
  • Limited Solutions