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

Question 73

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

Correct Answer:

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