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Use the Information Below to Answer the Following Question(s)

Question 99

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Use the information below to answer the following question(s) .
Barry operates a shop in a resort in an area known for its high inflation rate. The inflation rate for the last few years has been averaging 3 percent a month. His long-term real rate of return is 12 percent, or 1 percent a month. On April 1 he anticipates that real dollar sales during the summer will be as follows:
Use the information below to answer the following question(s) . Barry operates a shop in a resort in an area known for its high inflation rate. The inflation rate for the last few years has been averaging 3 percent a month. His long-term real rate of return is 12 percent, or 1 percent a month. On April 1 he anticipates that real dollar sales during the summer will be as follows:    -What will the sales figures be for each month, respectively, assuming the owner uses a nominal rate approach? A)  $40,000; $50,000; and $36,000 B)  $40,000; $51,500; and $38,192 C)  $41,200; $53,045; and $39,338 D)  $41,200; $51,500; and $39,338 E)  $40,000; $51,500; and $39,338
-What will the sales figures be for each month, respectively, assuming the owner uses a nominal rate approach?


A) $40,000; $50,000; and $36,000
B) $40,000; $51,500; and $38,192
C) $41,200; $53,045; and $39,338
D) $41,200; $51,500; and $39,338
E) $40,000; $51,500; and $39,338

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