11
QuizMultiple Choice

Investments — Test

Question 11 • Financial Math

Delaney invests $30,000 in a fixed deposit account that pays no interest over 4 years. During this period, inflation averages 4% per year. What will the present value of the $30,000 investment be at the end of the 4 years? Use this formula to calculate the present value while accounting for inflation: present value=(future value)/((1+annual inflation rate)^number of years)

Answer
A
30 dollars comma 000 point 0 0
B
25 dollars comma 000 point 0 0
C
$35,095.76
D
$25,644.13
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