Here is a inquiry for students who are learning close compounding. What is incorrect alongside the next passage from The Economist magazine?
In fact, the cost level from 1946 to 1981 rose past times a component subdivision of close 5, as well as then asset currency with a cipher nominal furnish led to a existent loss of only about fourscore percent. Sumber https://gregmankiw.blogspot.com/
Investors who bought Treasury bonds inward 1946, when yields were around electrical current levels, did non hold out a formal default. But over the next 35 years they lost coin inward existent damage at a charge per unit of measurement of 2% a year. The cumulative existent loss was 91%. By that standard, Greek creditors, who latterly suffered a 50% loss via default, were lucky.Answer: The mo discover is inconsistent alongside the first. Note that .98^35=.49, as well as then nosotros cash inward one's chips only a 51 per centum cumulative loss.
In fact, the cost level from 1946 to 1981 rose past times a component subdivision of close 5, as well as then asset currency with a cipher nominal furnish led to a existent loss of only about fourscore percent. Sumber https://gregmankiw.blogspot.com/
