Suppose the Inflation Rate Is 0

question 45

Multiple Choice

Suppose the inflation rate is 0.8% per half year and you can invest money at j₂ = 6%.If you invested $100,000 at the start of the year,how much will you have accumulated,in "real" terms (after taking into account inflation) ,at the end of the year?

• A)$104,324.14
• B)$104,330.71
• C)$104,412.71
• D)$104,448.40

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Definitions:

Variable Substitution

In mathematics, this involves replacing variables with other variables or values to simplify expressions or solve equations.

Mathematical Expression

A combination of numbers, operations, and sometimes variables that represents a mathematical relationship or value.

Exponentiation

The mathematical operation involving the raising of a number to the power of another number.

Mathematical Expression

A combination of numbers, operations, and symbols forming a meaningful equation or inequality.