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Suppose you bought an inflation-indexed security for $12,000 in January 2013 which pays an annual interest of 4 percent. If the value of the inflation

Suppose you bought an inflation-indexed security for $12,000 in January 2013 which pays an annual interest of 4 percent. If the value of the inflation index in January 2013 was 106 and its value in January 2014 was 105, what is the value of the inflation-adjusted principal?

A)	$12,114.29
	B)	$11,342.58
	C)	$8,000.60
	D)	$13,126.41

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