Blipton (12/08) : Property value issue

I know that the wording of the question is a bit confusing, but the actual rate of inflation applicable to the building is 8% which is what they have used. (There is no such thing as a 'real rate of inflation')

Hi Sir, Question on acquisitions and mergers. Pricut Inc Part c how do I solve the equation 29.50 = 100/(1+r)to the power 10

This has nothing at all to do with Blipton! You must start a new thread when you are asking about something different. Your question really is rather basic algebra. If 29.50 = 100 / (1+r)^10 Then 29.50 x (1+r)^10 = 100 So (1+r)^10 = 100/29.50 = 3.3898 Therefore 1+r = 10th root of 3.3898 (Alternatively you could use the discount factor tables. 1/(1+r)^10 = 29.50/100 = 0.2950 1/(1+r)^10 is the 10 year discount factor at r per year. So you can look in the tables and see what rate of interest (r) ends up giving a 10 year discount factor equal to 0.2950)

thanks sir

You are welcome :-)