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Cover the cost of groceries during this period

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For the next 9 years, measured in today's dollars (real dollars), a family anticipates buying $5,000 worth of groceries each year. Inflation is expected to be 3 percent per year during this period. The market interest rate is 6 percent compounded annually. If the family wanted to invest money today to cover the cost of groceries during this period, how much would they need to invest today at base time (b=0).

Reference no: EM131279617

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