You Plan on Depositing $10,000 a Year in Real Terms

question 274

Multiple Choice

You plan on depositing $10,000 a year in real terms into your investment account for the next four years. The relevant nominal discount rate is 7.5% and the inflation rate is 4.2%. What are these deposits worth in today's dollars?

• A) $36,418.02
• B) $36,787.78
• C) $37,023.03
• D) $38,021.21
• E) $38,504.19

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Definitions:

Pregnancy

The condition of having a developing fetus in the uterus, typically lasting around 40 weeks from the last menstrual period to childbirth.

Development

The process of growth and change that humans go through over time, including physical, cognitive, and social development.

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A sexually transmitted infection that, in advanced stages, can attack major organ systems.

Sexually Transmitted Infection

Infections that are primarily spread through sexual contact, caused by bacteria, viruses, or parasites.