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You expect inflation to be 3% per year for the next 10 years. How much will you have in real terms in 10 years if

You expect inflation to be 3% per year for the next 10 years. How much will you have in real terms in 10 years if you invest $1,000 in nominal terms each year for 10 years, starting next year? Your investment account earns 5% APR (compounded annually) in nominal terms.

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$10,187

$12,578

$9,359

$16,904

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