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