Dan and Jia are have just purchased a condominium for $70,000. Since the condo is very small, they hope to move into a single-family house in 5 years. How much will their condo be worth in 5 years if inflation is expected to be 8 percent?
What will be an ideal response?
PV = $70,000, r = 8%, n = 5
FV = 70,000(1.08)5 = $102,852.97.
Business
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