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Janet bought a certificate of deposit (CD) at a local bank for $9862.0. The bank would pay an interest rate of 4.28% if the CD

Janet bought a certificate of deposit (CD) at a local bank for $9862.0. The bank would pay an interest rate of 4.28% if the CD were cashed after 5 years. If the inflation is expected to be 2.58%, and the time value of money is 8.0%, what is the present worth of the CD? Hint: First, compute the real interest rate, then compute worth of the CD when it is cashed in.

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