Inflation Is Running at 2

question 130

Multiple Choice

Inflation is running at 2.4% per year when you deposit $11,000 in an account earning 6.5% per year compounded quarterly. In constant dollars, how much money will you have 4 years from now Round your answer to the nearest cent. [Hint: First calculate the value of your account in 4 year's time, and then find its present value based on the inflation rate.]

• A)$12,965.96
• B) $12,921.51
• C) $12,947.97
• D) $12,937.97
• E) $12,870.38

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