Question

when you convert 10000 present dollars into future dollars of year 15 if the inflation rate is 77% per year, the result is equal to __________.

Answer 1

$125,500

Explanation:

From the question we are given the following

Present amount = 10000

Inflation rate = 77%

Time = 15years

Using the simple interest method n

Get the inflation amount after 15years

SI = Principal × Rate ×Time/100

SI = 10000×77×15/100

SI = 100×77×15

SI= $115500

The amount after 15years = Present amount + interest

Amount after 15years = 10000+115500

Amount after 15years = $125500

Hence the required result is equal to $125,500