Business, 23.12.2019 18:31, sarak2212

You would like to have the current equivalent in terms of today's buying power of $2,500 in 10 years. how much would you have to invest today (in nominal terms) to fund this level of real consumption?
you expect inflation to be 5% per year over that time period. your investments earn 7% per year in nominal terms.

a. $2,112
b. $2,500
c. $1,271
d. $2,070

Answers: 3

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You would like to have the current equivalent in terms of today's buying power of $2,500 in 10 years...