Question

Select the correct answer from the terms provided to complete the sentences below. There are more answers than questions, therefore some of the items will remain unused.

Options: Real interest rate, i + f, Decreased, Inflation-controlled rate, Market interest rate, i + f + if, (1 + f)ⁿ, MARR, Constant value, Increased, Inflation rate, Today's dollars

• Inflation occurs when the value of the currency has ___________ over time.

• Another term for today's dollars is __________ dollars.

• The market interest rate is a combination of the real interest rate and the ___________.

• If future dollars are expressed in terms of today's dollars, the inflation-adjusted present worth is found by using the ______________ in the present worth factors.

• In order to obtain the buying (purchasing) power of future dollars in terms of constant value dollars, the first step is to use the market interest rate to obtain F and then divide by _________________.

• To determine the actual amount of money accumulated at a future time, use the ___________________.

• Please show steps

Answer 1

• Inflation occurs when the value of the currency has Decreased over time.

• Another term for today's dollars is Constant value dollars.

• The market interest rate is a combination of the real interest rate and the Inflation rate.

• If future dollars are expressed in terms of today's dollars, the inflation-adjusted present worth is found by using the Inflation rate in the present worth factors.

• In order to obtain the buying (purchasing) power of future dollars in terms of constant value dollars, the first step is to use the market interest rate to obtain F and then divide by (1 + f)ⁿ.

• To determine the actual amount of money accumulated at a future time, use the Market interest rate.

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