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Twenty thousand dollars is invested today. If the annual inflation rate is 6% and the person wants to realize an effective annual return on investment
Twenty thousand dollars is invested today. If the annual inflation rate is 6% and the person wants to realize an effective annual return on investment of 10% (without inflation), what will the approximate future value of the investment, adjusted for inflation, be in 5 years? The options are:
$115,000
$139,000
$142,000
$121,000 (please show the equations used) Thanks!
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