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Business, 29.05.2020 02:00, oliviaprejean18
7) As a result of sky-high gas prices, the cost of delivery pizza is expected to experience a constant 8% annual rate of inflation. In today' s dollars, Obese Oliver spends $2,000 per year on delivery pizza. His delivery pizza-eating habits will not change over the next ten years, so he will pay whatever price increases are necessary to sustain this level of consumption . If the nominal interest rate (note that " nominal" refers to both interest convertibility and its relationship to inflation), convertible semiannually, is 10%, find the present value of Oliver's delivery pizza purchases for the next ten years.
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