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

question 302

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